In recent times, the secondary market is witnessing trading above Rs 20 billion daily. Nagarik Stock Dealer contributes merely 0.23 percent in the total transaction amount. The daily increasing transaction amount and rigid trading of the stock dealer have made it irrelevant in the market. Moreover, its limited capital has also made its roles limited in the market.
Prior to its operation, investors had huge expectations from the dealer. They expected that the dealer would balance the huge fluctuation in the market, however, the dealer fell short of their expectation.
Investors viewed that the limited capital of the dealer is the main reason for its shortcomings. “In recent time, the market expanded turned huge due to entrance of an large number of new investors. Nagarik Investment Dealer lacks capital in proportionate with the market,” said Ramesh Dhungana, an investor to Merolagani.
At the same time, being a public enterprise, it lacks the efficiency and competitiveness needed to run the market, added Dhungana.
Moreover, the dealer could not attract investors towards it. Instead of following the dealer, investors follow the floor sheet of stockbrokers for investment, said Bidesh Regmi, an investor.
In the international market, stock dealers are inevitable to control the abnormal fluctuation in the stock market; however, Nagarik Investment Dealer failed to perform the duty.
One of the reasons that the dealer failed to shine in its position is due to restrictions on trading. Nagarik Stock Dealer can trade stock of only 31 listed companies allowed by NEPSE. In the current scenario, the market is bullish due to the increase in the market price of hydropower development banks and finance companies’ stock which the dealer cannot trade.
Nevertheless, they can trade any share with the help of other broker companies. It has invested in such companies but for its own benefit, other than, for dealer purposes. Thus, the conflict of interest in its trading has also squeezed its role as the stock dealer.
