Forward Community Microfinance’s 500 units transaction marked as close-out
- ShareSansar, June 16, 2017 on Exclusive , Featured , Latest , Stock Market
On June 14, 2017, Broker No. 58 (Naasa Securities Pvt. Ltd.) sold 500 units shares of Forward Community Microfinance Bittiya Sanstha Ltd. (FOWAD). It was bought by Broker No. 34 (Vision Securities Pvt. Ltd.) at Rs 1,288 per share.
As confirmed by an official of Naasa Securities, the transaction worth Rs 6,44,000 will be settled as close-out since the sell order was entered mistakenly. Now, the seller will have to pay a fine of 20% of the total transaction amount to settle the transaction.
A similar error was encountered last month as well when Primo Securities (Broker No. 16) wrongly entered a sell order for 100 units of FOWAD shares. The transaction was also settled as a close-out.
Shares of newly-listed microfinance companies are difficult to buy in NEPSE as there are rarely any sellers. Furthermore, shareholders of these companies hold on to these shares as long as possible in hopes of getting high dividends and for selling it at a higher price. Shareholders of RSDC (RSDC Laghubitta Bittiya Sanstha Ltd.) and MERO (Mero Microfinance Bittiya Sanstha Ltd.) only started to sell their shares after their prices reached over Rs 3,000.