Share market likely to open from May 24

Instead of tomorrow, the share market is going to start trading from May24.
The market has been closed since April 26 after the devastating 7.8-magnitude earthquake of April 25. And it had initially planned to start trading from tomorrow. But the market lost confidence after another earthquake of 7.3-magnitude, according to USGS, on May 12. The market is closed - for the first time in its history - since April 26.
However, Nepal Stock Exchange (Nepse) is yet to inform its regulator, Securities Board of Nepal (Sebon), according to general manager of Nepse Sitaram Thapaliya.
The Nepse has not officially notified the public, but the marker cannot open tomorrow, he said, adding that it would not be possible to resume trading from Sunday according to earlier plan due to Registrar to Shares, brokerage companies, Central Depository System and Clearing Ltd and investors are shaken after the May 12 earthquake.
Nepse will remain closed next week also due to pressure from some big investors and the brokerage companies. The share market was closed after the April 25 earthquake as some of the brokerage firms and Registrar to Shares (RTS) suffered huge damage, apart from Central Depository System (CDS) and Clearing Ltd, that was worst hit.
Though, some of the stakeholders proposed the market to open partially – during today's meeting – most of the stakeholders sought for few more days to calm the nerves of the shaken investors. "The market has lost confidence after the May 12 earthquake," they said, suggesting Nepse to open trading for an hour Sunday, and gradually increase its trading hour to normal. But Thapaliya said that the Nepse cannot open for only one hour. "Either the trading hours will be normal or the market will remain closed for the time being," he added.
The market operates for three hours from 12 to 3 five days a week from Sunday to Thursday.
Some of the Registrar to Shares including Civil Capital, Siddhartha Capital, NMB Capital and Growmore Merchant Banker have asked for an additional period of one week to set up their offices damaged by the earthquakes. Similarly, CDS and Clearing Ltd has also sought time to shift its office to Nepse premises in Bhadrakali from the current building that has been damaged badly.
The share market that is going to open after a month from the earthquake of April 25 is expected to see a selling pressure due to investors' need of cash and also lost confidence.

Siddhartha Investment Growth scheme after Tihar

Siddhartha Capital is bringing Siddhartha Investment Growth scheme soon as it has received a green signal from the capital market regulator.
"We received the approval letter yesterday from the Securities Board of Nepal," said chief executive of the Siddhartha Capital Dhruba Timilsina.
"We will float Rs 400 million worth units in the market immediately after the Tihar, he said, adding that the five-year scheme could, however, also be allotted to Rs 500 million, if oversubscribed, according to the Mutual Fund Regulation.
The regulation has directed that the fund could allot 25 per cent more, if the units are oversubscribed.
"The current trend of the capital market shows that the investors are slowly gaining confidence and the scheme will help more to boost the confidence," he added.
One of the main advantages of mutual funds is that they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult to create with a small amount of capital.
An Investor can buy a minimum of 100 units of the scheme that costs Rs 10 each unit and maximum of upto Rs 40 million, Timilsina said, adding that apart from the general investors, the institutional investors like banks and financial institutions can also invest in the scheme as buying mutual fund units would not be considered cross holding — like shares of other banks and financial institutions — which the central bank has barred.
Siddhartha Capital — a subsidiary of Siddhartha Bank — had applied for the approval of the scheme to the board on September 11 after the initial preparations and planned to issue units before the Dashain festival but the board has taken its time to give approval for the mutual fund scheme that is close ended and projects 15 per cent return annually.
The mutual fund is a type of professionally-managed collective investment vehicle that pools money from many investors to purchase securities. Closed-end funds generally issue shares to the public only once, when they are created through an initial public offering.

Siddhartha Capital formally opens

Siddhartha Capital – Siddhartha Mutual Fund’s fund manager and depository – was formally inaugurated by chairman of Securities Board of Nepal (Sebon) Baburam Shrestha here today.

Siddhartha Capital – a merchant banking subsidiary of Siddhartha Bank – is prepared to launch the New Fund Offer of Siddhartha Growth Investment Scheme I.

Soon, informed chief executive of Siddhartha Capital during the inauguration.

Siddhartha Bank is also the sponsor of the first mutual fund that is going to be operated after the Mutual Fund Regulation 2067 came into existence.