Secondary market at historic high due to shrink in other investment areas: Sebon

KATHMANDU: Securities Board of Nepal (Sebon) said that the contraction in other areas of investment has attracted investors in the secondary market, thereby taking the market to new height these days.

Speaking at a program organized on the occasion of the 29th anniversary of Sebon, its chairman Bhishma Raj Dhungana said that the growth and size of the secondary market has reached a historic high due to the significant increase in the number of investors.

He said that the government’s revenue from the secondary market has also increased by a wide margin as the daily turnover in the tens of millions of rupees has risen to billions of rupees.

He said that due to the increase in the size of transactions in the market, the government is now in a position to raise Rs 1 billion in revenue every month.

Dhungana informed that since the beginning of the Corona pandemic, there has been more attraction in the primary market as well, adding that for the first time in history, the largest amount of primary withdrawal took place during this period.

He said that the scope and size of the overall stock market has increased due to various reasons including reduction of commission of brokers and market entry of productive sector. Stating that the various works done by the board in this regard have further helped in the development of the market, Dhungana said that the Nepal Securities Board is preparing to formulate the Act. He also said that they are preparing to move ahead by drafting a separate act for securities trading.

Stating that the current challenge is to make the market clean, transparent and disciplined, Dhungana said that he would take initiative to control the unwanted activities in the market.

Fiscal Nepal |
Tuesday June 8, 2021, 03:24:15 PM |

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