Nepse cancels some Upper Tamakoshi share transactions
January 15, 2019 10:28 AM NPT
KATHMANDU, Jan 15: Nepal Stock Exchange (Nepse) has canceled share transactions of Upper Tamakoshi Hydropower Project traded above 10 percent price increase on the base price of Rs 224 per unit on Monday.
Technical error in stock trading system had allowed trading of shares of the hydropower company even after price increased by up to 50 percent to Rs 336 per unit on Monday.
The stock exchange company said that such transactions happened because of a technical error in the system and was immediately corrected.
Shares of the hydropower opened for trading in the secondary market from Sunday.
Murahari Parajuli, the spokesperson for Nepse, said that Nepse immediately corrected after the technical glitch came into its notice. “Only 259 transactions, including those which have been declared invalid now, had happened by that time,” Parajuli said.
Nepse had allowed the shares to be traded in the price band of Rs 100 to Rs 300 on Sunday. However, last traded price on Sunday was Rs 224 per unit. Parajuli said that the price range for the first day was set based on net worth of the company.
Nepse clamps individual circuit breaker if share price of listed company goes up or falls by more than 10 percent.
The hydropower company had issued public shares in three phases. All the primary shares were listed for trading on Sunday. It had issued primary shares to employees of promoter companies and members of Employees’ Provident Fund three years ago, while shares for project-affected locals and general public were issued earlier this year.