On the day CIT announce the big news, NEPSE index climbed to 1,344.59 points. By February 18, the index climbed by 55.42 points to 1,400.01 points. It indicates that the stock investors took the news as a good sign for the market development.
However, CIT clarified that it has not submitted application with the regulatory bodies to start operation.
Stock dealers plays crucial role in balancing volatility of the market, say stock analyzer. In bullish market, stock dealers sell their holdings to increase supply and in bearish market, they increase their purchases to retain demand in the stock market. This way, they maintain balance in the stock market.
Although CIT has formed a company to work as a stock dealer, apparently regulatory bodies of domestic stock market Nepal Stock Exchange (NEPSE) and Securities Board of Nepal (SEBON) have not developed any mechanism to allow such companies to carry out the task which has raised doubts among investors of its operation.
When asked, NEPSE said that it has not initiated any procedure regarding stock dealership in the domestic securities market. In the mean time, SEBON has remained idle after obtaining approval from Ministry of Finance to formulate guidelines on stock dealership.
Amid all these, lack of coordination between SEBON that permits stock dealership companies to function and NEPSE that formulates guidelines regarding operation of such companies also irks the investors.
