Following the SEBON decision, the sole secondary market of the country is set to remain close throughout the period of lockdown.
According to Bhisma Raj Dhungana, Chairman of SEBON, the board directed NEPSE to act accordingly as per the decision of Nepal government on lock down regarding the opening of the secondary market.
Consequently, the stock exchange will close the secondary market for the next one week. The market will open only after the government end the lockdown. The board insisted that the step is taken to safeguard the investors from COVID-19. Apart from the regulators, general investors, securities trader and merchant banks were demanding of closure of the market due to fear of spreading corona virus in the market place.
Meanwhile, the government has addressed the securities market through the relief package brought on Sunday, March 29. Uttam Kumar Khatri, spokesperson of Ministry of Finance informed that the package allowed the unsettled transaction before the closure to be settled within the end of Chaitra. "The relief package addresses two issues of securities market one being remaining settlement to be settle within the end of Chaitra and another being listed companies can submit the report also within Chaitra end," he informed. The companies have been excused from penalty due to delay until that time.
