Kathmandu. Investors’ umbrella organizations have demanded that trading in shares be suspended until political stability is achieved.
Five organizations of investors, General Investors Association, Nepal Shareholders’ Association, General Investors Association of Nepal, Securities Investors Association of Nepal and Nepal Share Market Investors Association jointly submitted a memorandum to the Securities Board of Nepal (SEBON). “In view of the current difficult situation, we heartily request the investors to take the decision to suspend the trading of securities until the political situation stabilises in coordination with the Securities Board of Nepal in coordination with the Securities Board of Nepal,” the statement reads.
“The current political instability in the country, the serious security challenges and the recent tragic events have saddened and worried the general investors,” the memorandum reads. “In view of this difficult situation, we are compelled to write this letter in the interest of the general investors and in the larger interest of the capital market,” the memorandum reads.
The memorandum states that the stock market is highly sensitive and even the smallest positive or negative impact of the national situation can cause major fluctuations. “In such an environment of fear and uncertainty, it is impossible for investors to make prudent and correct decisions, which increases the risk of undue selling pressure in the market and the collapse of the capital market as a whole,” the memorandum said. Therefore, the only prudent option seems to be to suspend the transaction for the time being, prioritizing the stability of the capital market and protecting the interests of millions of investors. ’
Investors have demanded that the Securities Board of Nepal (SEBON) should make arrangements to resume the market at an appropriate time only after peace and security is guaranteed in the country and all the components of other economic activities are managed and comfortable. “In this situation, we strongly demand the Securities Board of Nepal to expedite work to address the demands raised by the investors earlier,” reads the memorandum.
