Investors complaints of being unable to trade despite increasing collateral

Sep 21, 2020 02:21 PM Merolagani

Most of the investors in the stock market now trade stocks online, however, they face many problems in the online trading.

Among the many problems faced by the investors, one of them is the collateral problem. Some investors have complained of being unable to carry out additional transactions even after adding collateral with the broker companies. "Even after adding collateral, I have not been able to carry out trading as the TMS shows collateral already been used,” said an investor.

According to him, he had initially loaded collateral of Rs 25,000, of which, Rs 24,000 was seen utilized. After that, he totaled the collateral at Rs 50,000 by adding Rs 25,000. However, the TMS showed used collateral of Rs 44,000 without trading.

Now, he has increased the collateral to Rs 150,000. With that amount in collateral, he can trade up to Rs 600,000. But his TMS shows 99 percent collateral usage.

He said that he has been having problem trading as the broker companies refuse to release the collateral despite repeated calls and SMSs. The broker company told me to call NOTS to release the amount. When I called NOTS, they told me they will look into the matter, however, the problem has not been solved yet after 15 days.

 As per a broker, the system will itself increase the limit if one loads collateral through TMS, however, one needs to contact their broker if the collateral is increased through other mediums.

Meanwhile, Nepal Stock Exchange (NEPSE) said that the broker companies can easily release the collateral. It is a simple matter that does not need NEPSE intervention, said an official at NEPSE.

Currently, investors must keep 25 percent margin with broker companies to trade stocks online. However, investors have complained that they are not being able to trade shares equivalent to their tradable amount.


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