Sebon, MoF urge investors not to panic or make hue and cry

ShareSansar, September 7:

Officiating Chairperson and Director of the Securities Board of Nepal (Sebon) Paristha Nath Poudel has urged the investors not to off-load stocks in panic as there are no serious reasons for the market to fall down.

“We have been monitoring the market closely to see if it is being exploited by any side. We will watch the market for a few more days,” Poudel told ShareSansar after the trading was halted for the day as the benchmark index dropped by 5 percent on Sunday. “At this moment, however, we urge the investors not to bring the market further down by going on selling spree. Just have some patience; pause for a while to think carefullly instead of panicking.”

He said that the investors need to take longer term position, and not go for short term profit or buy or square off stocks, running after all sorts of rumors.

“Just think what would happen if everyone started to  sell their stocks without understanding whether they are being exploited by some players for their vested interest or if there are other factors leading to the downturn," Poudel added. 

Chairman of Nepal Stock Exchange Limited (Nepse) and CDSC Krishna Prasad Devkota has once again urged the general investors not to panic and start off-loading their stock.

“Though today (Sunday) was a public holiday for the civil servants, we have been monitoring the market,” Devkota, who is also the joint secretary at the Ministry of Finance, told ShareSansar. “There is no need to panic, no need to make hue and cry.”

He further opined that the government takes the current trend as not unnatural since the market had rapidly risen over the past few months.

“The market has been functioning as per the demand and supply dynamics, and that the government still does not feel that it needs intervene immediately,” he added.

He, however, did not clarify if the government would intervene at any point to ensure that the market did not drop below a certain point.

Addressing a function organized by the Investors’ Forum a few days back to clear the air regarding unwanted rumors about held-for-trading stocks and marginal lending, Devkota had said: “We are constantly in touch with Nepal Rastra Bank as well as Sebon and the government officials. We won’t let the market fall under a certain level.”

When approached by ShareSansar for comment, Nepse officials, however, remain tight lipped on the latest market downturn, stating that they cannot comment on the market development as market operator.

But a senior Nepse official, insisting anonymity, said that they do not see any reason for the market to go down.