OTC Market Records Rs. 5.04 Arba Turnover Till Q4; 3.65 Crore Shares Traded

In the fourth quarter of the fiscal year 2080/81, the Over-the-counter (OTC) market reported a turnover of Rs. 5.04 Arba in its trading activity. Notably, about 3,65,65,235 of these shares belonged to companies not listed on the NEPSE or those that had been previously delisted. So far, a total of 244 companies have been registered and transacted in this market.

The OTC market, recognized as the off-board market, operates outside regular trading hours and provides a platform for trading shares of companies that are not listed on the NEPSE or have been delisted. Trading in this market typically occurs between 11 AM to 1 PM on the NEPSE, excluding public holidays and Fridays.

NEPSE introduced the 'OTC Market Regulations, 2065' back in Jestha, 2065, paving the way for a distinct counter for transactions apart from regular automated trading.

The process of engaging in the OTC market involves investors directly submitting their buy/sell orders to the market, which NEPSE subsequently registers sequentially. Buyers engaging in the OTC market are required to furnish company-specific purchase orders and deposit 10% of the amount of the share as collateral. This information, including the company's name, investor details, and pricing, is displayed on the price quoting board. The market then adjusts trading based on the received orders and price information, with transactions occurring when prices and quantities align.

Furthermore, for the clearance process, sellers are mandated to present the share certificates to the branch for verification within three business days. On the other hand, buyers are required to deposit the payment within the same duration at the bank designated by NEPSE.

The details of the transactions till the fourth quarter of FY 2080/81 through the OTC Market are as follows: