Stock investors collect signatures to protest govt inaction

KATHMANDU, April 17: 

An agitation committee formed by three share investors associations collected around 1,000 signatures of share investors till Monday, as part of its first phase of program to protest what it calls the government´s indifference toward shoring up bearish stock market.

This campaign, underway at Putalisadak, will continue for another two weeks after which collected signatures will be presented to the prime minister and finance minister, said Prakash Rajaure, general secretary of Nepal Securities Investors Association, which along with Nepal Investors Forum and General Investors Association, launched the protest. 

“If our demands are not fulfilled by that time, we will take extreme measures such as preventing officials of Securities Board of Nepal (Sebon) from entering office premises and halting share transactions indefinitely,” Rajaure said.

The share investors have presented 13 demands, which among others include establishment of market rescue fund to revitalize share market, which has plunged over 70 percent since August 2008, wiping over Rs 320 billion from the secondary market. 

Other demands include recognition of brokers as guarantors of loans that are provided against stocks, revision in cross-holding provision so as to allow banks and financial institutions (BFIs) to acquire up to five percent stake in other BFIs, and introduction of share buyback facility to facilitate companies whose share prices have taken a plunge.

Share investors have also called upon BFIs to end the practice of exerting pressure on stock investors, who have acquired loans by pawning shares, in case they fail to pay installments in time. 

“These loans should be treated like general loans and subjected to provisioning in case problems arise during repayment phase,” Rajaure said.