KATHMANDU, June 16: Nepal Stock Exchange (Nepse) on Wednesday fell by a double digit of 52.41 points in the aftermath of the Securities Board of Nepal (Sebon) issuing a caution notice.
Sebon on Tuesday made public a list of 51 listed companies that the regulator has considered for study citing the shares of these companies as high risks for investment. “Investors are needed to make decisions based on their capacity to assume risks along with carrying out the financial assessment and related indicators of the companies concerned,” Sebon stated in its public notice.
Stock freefall continues
Sebon, as the regulator, has been facing criticism for its weak monitoring of the transactions in the secondary market. The country’s only stock exchange is gaining an unnatural rise at a time when the economy has been battered by the ongoing pandemic.
However, the investors have termed Sebon’s move as ‘unethical.’ Sagar Luitel, an investor from Kapan, said it is not fair that Sebon makes unnecessary interventions in the market that impacts hundreds of thousands of investors.
Except microfinance, all the rest of the sub-groups at Nepse witnessed a freefall on Wednesday. With a drop of the largest 405.83 points, investors in the life-insurance sub-group lost the most.
