Stock investors suffering from delay of transaction settlement urged to report to SEBON for action

Published On: October 15, 2022 05:55 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Oct 15: The Securities Board of Nepal (SEBON) has cautioned the stockbrokers to clear transactions in T+2 model amid complaints that a number of brokerage companies have been delaying to clear transactions on the prescribed deadline.

Issuing a public notice on the occasion of the ‘World Investor Week-2022’ on Thursday, the sector’s regulator has asked investors concerned to file complaints at the SEBON in case of delay in settling their due. Under the T+2 model, the stockbrokers have to settle transactions in two days from the date of the transactions. “If the Board is informed about the delay, it will immediately proceed with taking necessary action,” reads the SEBON’s notice.

The regulator has also urged new investors to start investing from the primary market to minimize the risks. While investing in the primary market too, the investors need to study the prospectus of the company issuing the securities and analyze important aspects such as the company's founder and management, financial status, and credit rating level, according to the SEBON.

The SEBON has asked all potential investors to take into consideration the inflation, bank liquidity, and interest rates while investing and make investment decisions as they have a direct impact on the securities market. When investing in the securities market, investors have to calculate the required or expected rate of return. Investors need to maintain maximum information about the stocks they are investing in, while remaining equally aware about legal provisions related to the market, the SEBON has said.


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