Kathmandu. Investors’ umbrella organizations have demanded a temporary suspension of share trading until political stability is ensured.
Share Investors Association of Nepal, Nepal Capital Market Investors Association and Independent Capital Market Investors Association submitted a memorandum to the Securities Board of Nepal (SEBON) today. Investors have also expected the Securities Board to take appropriate steps on time by taking the joint request of the investors seriously in view of the current difficult situation in the country.
“We are well aware of the fact that the political situation of Nepal has become unstable in recent period, challenges to peace and security have increased and these tragic incidents have made serious impact on the morale of the general public as well as the investors,” the memorandum reads. “Since the capital market is naturally more affected in such a difficult situation, we have submitted this collective request keeping in mind the stability of the market and the safety of the investors,” the statement reads.
The memorandum states that the nature of the stock market is sensitive. “Even a small signal or unexpected news has the potential to cause big upheaval. “The current fear and uncertainty have made it almost impossible for investors to take prudent decisions,” the memorandum said, adding, “Past events have proved that this will result in unnecessary selling pressure, the risk of abnormal market crashes due to small transactions and irreparable losses especially for small and new investors.” ’
“While assessing the situation seriously, temporarily suspending share trading is the only reasonable option to protect the market from further losses,” the statement said. “We request you to make arrangements to resume the business only after the political stability is restored and the overall economic activities become smooth,” the memorandum reads. ’
