At a time, when the investors are losing confidence on stock market due to poor performance, the agitating Nepse staff threatened to halt trading from tomorrow.
"The Board of Directors didnot implement the agreement we entered last time forcing us to halt trading," said Bhesraj Khanal, president of the Employees Association at Nepal Stock Exchange (Nespe).
The association and Nepse board had reached an agreement on December 5 on increasing the professional standards of the employees, pay and perks, and reviewing the internal regulation.
"However, the agreement has not been implemented," Khanal blamed, adding that including general manager and the chairman, there are three representatives from the Finance Ministry. "But they are not sincere to their commitment."
However, the brokers are hopeful that they could trade tomorrow. "If the staff shut down the server, how can we trade," said president of the Nepal Stock Brokers Association Nanda Kishor Mundada.
"We have requested the regulatory authority of the capital market, Securities Board of Nepal (Sebon) and the Nespe to solve the problem at the earliest," he said, adding that the investors' confidence on the market will further plunge if the trading is halted.
However, this is not the first time in Nepal that the secondary market has been halted. Last year, the secondary market was closed twice to protest and it will be the third time.
Showing posts with label Nepal Stock Brokers' Association. Show all posts
Showing posts with label Nepal Stock Brokers' Association. Show all posts
Monday, January 24, 2011
Monday, February 22, 2010
NRB eases margin lending, investors dig in heels
Nepal Rastra Bank (NRB) has relaxed the margin lending provision today due to investors' pressure.
The central bank has relaxed the maintenance margin by five per cent. "Banks need not give margin call if the share price goes down by 10 per cent or the loan goes up by 55 per cent," said the central bank's circular to the banks. Earlier, banks were directed to give margin call if the loan went above 50 per cent, as according to the central bank's rule, they could not lend more than 50 per cent against shares.
Similarly, investors can renew 75 per cent of the loan against shares, if they pay the remaining 25 per cent and its interest, the central bank added. Earlier, investors were allowed to renew only 50 per cent of the loan against shares.
However, investors think that the NRB directive has yet not addressed their demands. They want a 100 per cent renewal provision. According to them the central bank's regulation is also against the Company Act. "Shares are also assets," said Ramchandra Bhattarai, an investor. "We want 100 per cent renewal provision," he said adding that today's circular of the central bank do not address their concern.
The investors want commitment from the concerned authorities -- the Finance Ministry, Securities Board of Nepal (Sebon) and Nepal Stock Exchange (Nepse. Otherwise, they have threatened to continue their protest programmes. "We are going to halt Nepse transactions tomorrow as well," Bhattarai said adding that the Finance Ministry and Sebon should at least show concern.
Investors brought the share transaction to a complete halt for the second day today at Nepse to pressurise the government to concede their demand. they said it must act on behalf of them as Nepse has witnessed a 'sort of crash'.
General Investors' Association, Nepal Investors' Forum and Nepal Securities Investors' Association have put forward a 22-point charter of demands before the government which includes demands for ending the policy of changing 19 per cent promoters' shares into general shares and setting new criteria for taxes on capital gain tax.
Investors allege that the government has not taken steps to upgrade the capital market. According to them, the overflow of number of shares in the market has brought Nepse down as the number of investors did not increase commensurately.
Issuing a statement, Nepse voiced grave concern over the protest of investors. "The current protest of investors has blocked regular work of Nepse and this is not fair," it stated.
Chairman of Stockbrokers' Association, Nanda Kishor Mundada, said that the investors were forced to go on strike due to the government apathy.
There is an investment of Rs 3.75 billion in the domestic stock market. The market closed at 485.14 points on Thursday -- the last day of last week's trading.
The central bank has relaxed the maintenance margin by five per cent. "Banks need not give margin call if the share price goes down by 10 per cent or the loan goes up by 55 per cent," said the central bank's circular to the banks. Earlier, banks were directed to give margin call if the loan went above 50 per cent, as according to the central bank's rule, they could not lend more than 50 per cent against shares.
Similarly, investors can renew 75 per cent of the loan against shares, if they pay the remaining 25 per cent and its interest, the central bank added. Earlier, investors were allowed to renew only 50 per cent of the loan against shares.
However, investors think that the NRB directive has yet not addressed their demands. They want a 100 per cent renewal provision. According to them the central bank's regulation is also against the Company Act. "Shares are also assets," said Ramchandra Bhattarai, an investor. "We want 100 per cent renewal provision," he said adding that today's circular of the central bank do not address their concern.
The investors want commitment from the concerned authorities -- the Finance Ministry, Securities Board of Nepal (Sebon) and Nepal Stock Exchange (Nepse. Otherwise, they have threatened to continue their protest programmes. "We are going to halt Nepse transactions tomorrow as well," Bhattarai said adding that the Finance Ministry and Sebon should at least show concern.
Investors brought the share transaction to a complete halt for the second day today at Nepse to pressurise the government to concede their demand. they said it must act on behalf of them as Nepse has witnessed a 'sort of crash'.
General Investors' Association, Nepal Investors' Forum and Nepal Securities Investors' Association have put forward a 22-point charter of demands before the government which includes demands for ending the policy of changing 19 per cent promoters' shares into general shares and setting new criteria for taxes on capital gain tax.
Investors allege that the government has not taken steps to upgrade the capital market. According to them, the overflow of number of shares in the market has brought Nepse down as the number of investors did not increase commensurately.
Issuing a statement, Nepse voiced grave concern over the protest of investors. "The current protest of investors has blocked regular work of Nepse and this is not fair," it stated.
Chairman of Stockbrokers' Association, Nanda Kishor Mundada, said that the investors were forced to go on strike due to the government apathy.
There is an investment of Rs 3.75 billion in the domestic stock market. The market closed at 485.14 points on Thursday -- the last day of last week's trading.
Friday, October 16, 2009
Nepse, brokers make a killing
The brokers are having a field day. Their net commission has doubled and the Nepal Stock Exchange’s (Nepse) has trebled in a year.
In the fiscal 2008-09, the total net commission earning of the brokers was Rs 296.47 million. Compare this to the situation a year ago. It was only Rs 143.45 million. Similarly, the Nepse’s commission has gone up to Rs 72.75 million from Rs 25.22 million, according to the Securities Board of Nepal (Sebon) — the regulatory authority of the capital market.
This has translated to a windfall for the individual brokers too.Nepal Stock House (Broker No 14) has made the maxium killing last fiscal. The earning stands at Rs 25.24 million as net commission.
However, Kumari Securities (Broker no 1) had earned only Rs 14.92 million a year ago.
The increase in the market size has helped the brokers to rake up a tidy sum.
Though the Midas Stock Broking Company (Broker no 21) earned Rs 2.86 million, the figure, by no means, is unimpressive.
As per the rule, brokers are liable to pay 25 per cent commission to the Nepse. Besides, they paid Rs 48.49 million as tax to the government.
Many are now finding the profession a lucrative one. The scenario became rosy only after 2002 when the market gathered momentum. The market capitalization at present stands at over Rs 4 trillion. It was Rs 600 million in 1994.Unfortunately, the number of brokers has not increased, which makes it difficult for the investors.
At present, there are 23 brokers in the secondary market. Of them, half are active in secondary market. Altogether, they have earned Rs 296.47 million as net commission.Back in 1994, there were only 25 brokers. Subsequently it increased to 32.
"The government should allow us to open branches or let our sub-brokers trade," said Nabaraj Pokharel, ex-president, Nepal Stock Brokers’ Association.
Rabindra Bhattarai, share analyst and a lecturer at Shanker Dev Campus, suggested that the brokers’ headcount should be increased.
Nepse, which started trading 15 years ago, failed twice in adding to the existing brokers’ list. Both its attempts came a cropper.
In the fiscal 2008-09, the total net commission earning of the brokers was Rs 296.47 million. Compare this to the situation a year ago. It was only Rs 143.45 million. Similarly, the Nepse’s commission has gone up to Rs 72.75 million from Rs 25.22 million, according to the Securities Board of Nepal (Sebon) — the regulatory authority of the capital market.
This has translated to a windfall for the individual brokers too.Nepal Stock House (Broker No 14) has made the maxium killing last fiscal. The earning stands at Rs 25.24 million as net commission.
However, Kumari Securities (Broker no 1) had earned only Rs 14.92 million a year ago.
The increase in the market size has helped the brokers to rake up a tidy sum.
Though the Midas Stock Broking Company (Broker no 21) earned Rs 2.86 million, the figure, by no means, is unimpressive.
As per the rule, brokers are liable to pay 25 per cent commission to the Nepse. Besides, they paid Rs 48.49 million as tax to the government.
Many are now finding the profession a lucrative one. The scenario became rosy only after 2002 when the market gathered momentum. The market capitalization at present stands at over Rs 4 trillion. It was Rs 600 million in 1994.Unfortunately, the number of brokers has not increased, which makes it difficult for the investors.
At present, there are 23 brokers in the secondary market. Of them, half are active in secondary market. Altogether, they have earned Rs 296.47 million as net commission.Back in 1994, there were only 25 brokers. Subsequently it increased to 32.
"The government should allow us to open branches or let our sub-brokers trade," said Nabaraj Pokharel, ex-president, Nepal Stock Brokers’ Association.
Rabindra Bhattarai, share analyst and a lecturer at Shanker Dev Campus, suggested that the brokers’ headcount should be increased.
Nepse, which started trading 15 years ago, failed twice in adding to the existing brokers’ list. Both its attempts came a cropper.
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