The board has given its main priority to 'intra-day trading', a concept that has been discussed for a long time but has not yet been implemented.
According to Santosh Narayan Shrestha, Chairman of the Securities Board of Nepal (SEBON), the board has set a target to bring intraday trading into the market within a year. As per him, lack of intraday trading has made the currently implemented margin lending facility "incomplete". The board believes that combination of these two instruments will bring real liquidity and professionalism in the market.
“Investors purchase shares by taking loans, however, they are unable to manage the risk due to the lack of an intra-day profit booking facility. Initiation of intraday trading will balance demand and supply of shares in the market which is expected to make the market more dynamic” he added.
In a bid to implement the task, the board formed a high-level study committee under the convenorship of Expert Executive Director Rupesh KC. The committee was given a month's time to study the feasibility, policies and technical requirements of intraday trading and submit its report.
However, the board has extended the deadline as the work could not be completed on time due to seriousness and technical complexities of the subject.
Shrestha asserted that the intraday trading will start within the year itself. As soon as the committee submits its report, the board will make necessary amendments in policy and implement it.
