Kathmandu. Nepal Stock Exchange (Nepse) has issued a two-point directive to the trading members (share brokers and stock dealers) for share purchase order placement in the secondary market.
NEPSE has issued a directive to brokers to implement the limit on entering purchase order as per Securities Trading Operation Bylaw 8 (1) of the Securities Trading Operation Bylaw-2075 BS. According to NEPSE, the brokers have been allowing the investors to enter purchase orders higher than the actual collateral limit and making temporary purchase orders appear high and causing negative impact on the market. NEPSE has also warned that action would be taken against those found involved in such activities as per the prevailing laws of the securities market.
Here are the instructions
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According to Bye-law 8 (1) of Securities Trading Operation Byelaw-2075, when a broker receives a purchase order, he or she shall take at least 25 percent of the estimated amount to be settled in the course of implementation of the order from the client issuing the order in advance.
Contrary to the provision of B.Ye-law (8) of Securities Trading Operation Bylaw-2075, no amount more than the collateral limit of the investor shall not ÷be provided for entry with the intention of canceling the purchase and sale order.
