Chairperson of Nepal Stock Exchange Limited (Nepse) as well as CDSC Krishna Prasad Devkota has urged general investors not to panic and start off-loading their stock, which will not only harm them but also the only secondary market of the country.
“Please don’t panic. We are constantly in touch with Nepal Rastra Bank as well as Sebon and the government officials,” said Devkota. “We won’t let the market fall under a certain level.”
Addressing a program organized by Nepal Investors’ Forum to clear the air regarding the central bank directive in Kathmandu today, Devkota, who is also the joint secretary of the Ministry of Finance, further said that all senior officials of the finance ministry were aware of what is going on in the stock market, and won’t hesitate to intervene to correct the market if need be.
“The central bank officials have also clarified that its aim is to control only short-term position of the institutional investors and not to restrict their investment in the stock market,” Devkota added. “If you don’t understand all this and start to offload your shares in panic, only big, fat investors will benefit.”
He further said that the central bank officials may be organizing a program soon to clarify about the misinterpretation of its directive, which is creating panic among the general investors.
Speaking earlier at the program, Chairman of the Investors’ Forum Raj Kumar Timilsina and President of the Brokers’ Association Narendra Sijapati urged the central bank as well as Nepse and Sebon officials to clarify that the latest NRB directive is not aimed at restricting the investment of institutional investors in the stock market.
Former governor of the central bank Dipendra Bahadur Chhetri said that the central bank may have come up with the new directive, anticipating that growing investment of the commercial banks in the stock market in the wake of surplus liquidity in the banking system could eventually hurt the stock market as well as the banking sector.
“But it does not intend to ruin the stock market,” Chhetri added. “The market won’t crash. Hence I urge investors, especially the small general investors not to panic.”