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Investors’ pressure group threatens SEBON to go on “fast until death” if said demands are not met

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Fri, Nov 30, 2018 3:43 PM on Latest, Others, Stock Market,
-ShareSansar

Looking at the poor situation of the market, the share investors’ pressure group has submitted 10 point demand list to the Securities Exchange Board of Nepal (SEBON).

The demands were as follows:

  1. The government should have clear stand and guidelines regarding the securities market. It must bring in special programs for the expansion of the market.
  2. Online Trading System should reach ordinary investors immediately.
  3. The board must make required provisions to include Non Residential Nepalese and Nepalese citizens living in abroad in the market.
  4. Marginal Trading through brokers must be implemented.
  5. Margin type lone should be at 80% of the value of the shares and the risk weighted average should be set at 100% or less to make loans cheaply accessible. BFI’s should be allowed to float 25% of the total loan capacity for margin type loan, not 25% of the core capital.
  6. The board is required to establish Market Makers and Dealership that is in the pipeline of the board since past three years.
  7. Companies that have received credit rating of Grade 4 or 5 should not be allowed to issue IPO. Preventing the hydropower and other such companies from issuing IPO units provisions of the governing body are met.
  8. Before proposing right issue, the promoter and ordinary shareholders are required to deposit 75% of the said issue, only upon which the issue may be made public and proposed at the AGM.
  9. Commercial Banks should be provided with broker’s license and new brokers from all districts of the country should be provided with license to make the securities market accessible to all the people.
  10. On issuing FPO, the condition must be that the price of the shares should not be more than the Net worth per share.

The pressure group has also threatened the board to go on fast until death if the demands are not met. The group reached the office of the board on 14th Mangsir 2075 with the said demands to improve the current condition of the securities market.                                                   

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