CDSC to settle remaining transactions of Bhadra 25 on Ashwin 09

CDS and Clearing Limited is settling the remaining transactions of Bhadra 25 on Ashwin 09.

NEPSE had instructed CDSC to postpone the settlement of transactions before 2 pm of that day until further notice. After a few minutes of struggling with TMS, NEPSE had halted trading and resumed after 2:15 PM and closed at 5:15 PM.

Note that settlement of transactions after the market resumed at 2:15 is already complete. According to CDSC spokesperson Suresh Neupane, NEPSE has given them a new list for the transactions before 2:15 pm to be settled. Meanwhile, 640 transactions of Bhadra 25 and Bhadra 28 have been nullified.

Sharesansar also called NEPSE spokesperson Murari Parajuli. Parajuli says that each buy/ sell order in the TMS is distinct by a unique identified number. If, because of the TMS issue, any sell order got executed multiple times, NEPSE has only taken one valid transaction and nullified the rest.

Meanwhile, we called Mr. Bharat Ranabhat, President of Stock Brokers Association of Nepal. He has some valuable insights on the issue.

Basically, Ranabhat says that the transaction nullification wasn't a great deal for sellers. They simply had sold their shares multiple times because of the TMS issue. So, the multiple trades being canceled seems logical to them.

However, Ranabhat says that the decision to nullify is a major blow to the rights of buyers. Buyers do not care about the TMS issue. They do not care who sold the shares so that they could buy them. All they know is that they had bought the quantity of stock they liked, at a price they thought was reasonable to them. And out of nowhere, NEPSE uses its autocratic power to nullify the transactions.

However, NEPSE says that no buyer has reported such mishappening to NEPSE. Also, since not all orders are executed anyway, even if it happened, NEPSE says it is only an accident, and such buyers won't be allotted their shares.

The remaining 4,297 transactions will be settled this Friday, i.e. Ashwin 09.