Relay hunger strike organized by Investor’ pressure group begins today; Investors to fast until demands are met

Investors’ pressure group has begun relay hunger strike until their proposed demands are not met. The pressure group has taken this step to create a secure environment for investment and to protect the interest of the investors in the securities market. The investors reached office of NEPSE at Singhadurbar on Sunday to inaugurate the hunger strike. Nepal Investors’ Forum has also showed their support in the mentioned protest.

The following were the ten point demands put forward by the pressure group:

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.

Along with above mentioned bodies, Rashtra Janata Party has also shown support to this initiative. The party realeased a notice stating that the reason for this initiative is unfortunate while the government is turnining a blind eye towards the problem. They also mentioned in the notice that the party requests the government to find a viable solution that is in the favor of the investors.