June 29: The secondary securities market which has been closed since March 23 is reopening from today. The decision was taken after the Securities Board of Nepal (SEBON) gave directive on Sunday based on the suggestions of all the stakeholders with a commitment to not to close the market under any circumstances. Although the lockdown eased, the board was in dilemma whether to open the market or not. SEBON had formed a committee to conduct a study under its own leadership last Sunday. The committee had suggested opening the market as one can do business from home through Nepse’s online system. Chairman of SEBON Bhisma Raj Dhungana said that the decision to open the market as per the suggestion of the committee. He further said that the role of all the stakeholders in the market would be important to prevent such a situation from happening again.
Nepse has decided to reduce the business from 5 hours to 4 hours from today. Nepse said that it will conduct the business from 11 am to 3 pm as per the previous circuit arrangements. The Nepse board has decided that the rules for circuit breaker and price change will be followed like that of pre-lockdown period. Claiming that the disputed online trading system has improved and hence Nepse stated that it will resume the business by giving priority to the online business.
Uttam Aryal, chairperson of the Investors Association of Nepal, who is also a member of the committee, said that works that boost the morale of the investors have been done and the stock market is expected to pick up speed as the upcoming monetary policy is likely to address the stock market. He also informs that even if all the investors want to move the mortgaged property for more than three months, there is a fear of margin call problem as soon as the market opens. In this case, Aryal says that the Ministry of Finance should issue a circular and directive to make arrangements so that the old margin loan does not have to be renewed and the margin call cannot be made immediately.
SEBON has issued a six-point directive to operate the market. According to the directive, the stock brokers will not be allowed to operate screen rooms until further notice. The board has asked to do business from home as much as possible by contacting the brokers. Moreover, the board has stated that the business should be done by following the health security measures.