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NEPSE Halt

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The Nepal Stock Exchange is in trouble right now. As it was progressing, the issue on margin lending raised by the Nepal Rastra Bank has now been the only factor in the halt of daily stock transaction. A group of twelve to thirteen investors have not let the transaction. There are some brokers who do not want to expose themselves but are against those investors who are not letting them transact. The share transaction did not take place for the third consecutive days and those investors are holding their stance of not letting any transactions on the floor. With this, small investors have been terribly hit while the big investors do not have to face such problems. This could be the sign of Nepal Stock Exchange heading towards crash when Nepse was doing quite well. If this halt continues, it is for sure that Nepal Stock Exchange will crash.

There are some other issues as well in the Nepal Stock Exchange. Recently Nepal Stock Exchange had announced to add more brokers and the number of applicants reached much higher than the available seats. Some brokers have filed a case against NEPSE as they state that free entrance and free exit should be allowed to brokers.

It is now the matter or only hoping for the dispute being settled with Nepal Rastra Bank who issued notice of not allowing margin lending, the investors who are not letting the transaction to take place, the brokers and the Nepal Stock Exchange Market, itself. Whatever is happening is an unhealthy practice in a developing country like Nepal when the stock market was booming.

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