August 25: The long pending auction trading might soon start in the sole stock market of the country as demanded by stakeholders. In this regard, Nepal Stock Exchange (NEPSE) has forwarded its draft on auction-trading to the Securities Board of Nepal (SEBON) for approval on Tuesday, August 23. 

NEPSE informed that the legal door for auction trading will opened after SEBON approves the draft. “The draft has been formulated in order to provide assurance to the investors on clearing and settlements of share transactions,” said NEPSE. Under the action trading, share broker companies can trade shares from auction market if demand and supply in the share market get imbalanced. Particularly, if the supply of shares falls short to the demand in the stock market then, brokers can meet the demand through auction bidding from auction market. 

Similarly, NEPSE has also prepared trade guarantee fund by laws that was demanded by the general investors since long period.  NEPSE informed that the fund is being formulated in a bid to allow clearing and settlement process even when the buyers fail to meet their obligation of payments. However, as the draft for fund operation has not been prepared till date, member brokers will have to wait some time to utilise the fund. “The fund could be established and operated only after the board approves the bylaws and required work plan is formulated,” said a broker. 

Likewise, NEPSE has also forwarded securities listing bylaws to the SEBON on Tuesday. According to the NEPSE, it has formulated the new version of securities listing bylaws in a bid to make it updated with the time. NEPSE claims that the implementation of the draft and bylaws after approval will further ease and effectual the Nepali stock market.