Nine brokers thrown out of trading today again, Turnover, transaction likely to fall down

ShareSansar, August 13:

Nepal Stock Exchange (Nepse) has suspended nine more brokerage firms from trading today for their failure of timely settlement.

According to the notice of the Nepse, Opal Securities Investment (Broker No 4), JF Securities Company (7), Sagarmatha Securities (18), Asian Securities (26) and Premier Securities (32) are barred from performing trade today.

Likewise, Nepse has also suspended Creative Securities (40), Neev Securities (47), Sundhara Securities (52) and Naasa Sucrities Co (58) from trading due to the non-settlement of the papers.
 
The analysts attribute the downfall in the transactions and turnovers in the market as well as the heavy correction to the suspension of large number of brokers from trading daily.

The Nepse had suspended a total of 16 brokerage firms on Tuesday. Nepse benchmark index fell 18.73 points yesterday to settle at 1021.86 points.

The daily turnover and transactions had also heavily declined. While there used to be a daily transaction of around Rs 500 million few weeks back, there was just transaction of worth Rs 307 million on Tuesday.

While the Nepse suspends the brokers from trading for their failure for timely settlement, the brokers pass the buck to the CDS and Clearing Ltd for the delay in the cash settlement.

With the rise of the share transactions in the bourse, the clearing and settlement company has been finding it hard to settle the cash and papers on time due to its low capacity.