Kathmandu. The stock market will be open from Tuesday. The Nepal Securities Board (NSB) is preparing to issue instructions to start regular market trading from Tuesday.
After discussions with investors on Friday, the Nepal Securities Board (NSB) concluded to open the market. But a meeting of the board of directors is being held on Sunday to formalize it. Chairman Bhishma Raj Dhungana informed that the meeting on Sunday will decide on opening the stock market.
"Our board of directors is meeting tomorrow. After the meeting, there will be a discussion on opening the market from the Moon modality. We will give instructions to open the market soon, 'said Chairman Dhungana. '
Discussion on two models
The issue of whether to open the market as usual or to make arrangements like the open market in the middle of the lockdown will be discussed in the meeting on Sunday. If the market operates as per normal conditions, the market will be open for 5 hours. The price of scrip can fluctuate up to 10 percent and the index can fluctuate up to 6 percent.
But if the market is opened under special circumstances, there will be only 2 hours of trading per day. Similarly, the market will not fluctuate more than 2 percent of the day as before. However, the board is now in favor of conducting business at the rate of five hours a day as per normal conditions, said Chairman Dhungana.
"If the market is open under normal conditions, trading will start from Tuesday. If it is open under special conditions, it may be delayed by 1-2 days, but now we are in favor of resuming trading in a normal manner."
'The market will never be closed again'
Dhungana claimed that there was an unprecedented consensus among all parties in the market regarding the operation of the stock market. He said that the investors and other concerned parties have also expressed their commitment to never close the market, adding that the market will never be closed again once it is open.
"Once the market is open, it will never be closed again. Not only was the lockdown announced, the market will not be closed even if a curfew is imposed now, that infrastructure is now ready. Investors are unanimous that the market will never be closed, other parties are also unanimous, 'said Dhungana.
At present, Nepal Rastra Bank has removed the limit of payment in share trading. NRB has made an arrangement to pay up to Rs 1 lakh at a time through mobile banking and up to Rs 1 million at a time through internet banking. By doing this, any amount can be paid repeatedly. Earlier, it was banned to do more than one million transactions in one day.
Deputy Governor of Nepal Rastra Bank Chintamani Shiwakoti said that the arrangement was made by the Nepal Rastra Bank to facilitate the share trading and expressed confidence that it would facilitate the share trading.
Other demands are expected to be met
The Nepal Securities Board had recommended Nepal Rastra Bank to make three decisions regarding the securities market. Among them, the arrangement of removing the limit of payment through Connect IPS has been implemented. The other two demands were to increase the share loan margin from 65 percent to 75 percent and not to calculate the margin in case of 10 percent decline and to make arrangements for rescheduling of share loan. Dhungana said that the issue is expected to be addressed through monetary policy.
Deputy Governor of Nepal Rastra Bank Shivakoti also said that NRB was positive about rescheduling the loan. Stating that there were various demands not only from the stock market but also from other sectors, Shivakoti said that the monetary policy would play a positive role in rescheduling or restructuring loans even if the NRB had to look for resources to meet other demands.
Why did investors agree to open the market?
Earlier, investors in favor of not opening the market agreed on Wednesday and Friday that the market should not be held hostage. He suggested to the board to make the business easier by opening the market.
Investors are in favor of opening the market when the market closes and the property is mortgaged for a longer period of time than when the property is closed. Even those who want to sell shares to make a living are in trouble when the market is closed for a long time.
Radha Pokhrel, president of the Capital Market Investors' Association, said that they were in favor of opening the stock market after receiving assurances from the Securities and Exchange Board that shares would be traded without leaving the house and Nepse's online trading system would not be a problem again and again.
"Our demand is that you don't have to go to a broker to buy and sell shares. They have said that even if the shares are not sold in one click, you do not have to go out of the house to buy and sell the shares. Nepal Rastra Bank also limits online transactions, so we also demand that the market should be open now. We are also saying that we will never close the market, ”said Pokharel.
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