Nepal Stock Exchange (NEPSE) has released an official notice regarding the provisions related to AON – (All-Or-None), which shall be removed from the sale of securities with effect from 19 Ashad, 2079.
Last year, NEPSE closed AON feature in purchase/Buying order after some broker companies misused this feature.
Recently, SEBON and investors had an agreement regarding the removal of AON provision from its online trading system.
The All-Or-Non order allows an investor to direct the Trade Management System to only sell their shares if a buyer wants the entirety of the sell order quantity and vice versa. This was intended to ensure that the sellers do not get left with an unsold remnant if they want to sell all their shares, and buyers do not buy a partial amount.
However, this quickly became a hack for manipulators to put an obscurely large amount of buy or sell AON order at an obscure price. Such orders were virtually impossible to be executed, and they were seen on the market depth forever, impacting investor psychology.
Due to this reason NEPSE had proposed to remove the AON order altogether. However, the board had only given the approval to remove AON buy orders last year. Due to the recent market turmoil faced by the investors and in order to restore capital market, the board has decided to remove the AON Order altogether as many investors started claiming that few investors are using this facility to decrease market altogether.