They have been protesting from Sunday putting forth 22-point charter of demands, including softening the policy on margin lending.[break]
Through the new directives, the central bank has directed the banks and financial institutions to increase grace time for margin call to 21 days from existing seven days and renew loan on share deposit up to 75 percent of the total loan from existing 50 percent.
“The new directive is aimed at aborting our agitation. We will continue with our protest as the new measures have failed to address our demands,” Deepak Karki, president of Ordinary Share Holders´ Association, told Republica. He demanded the concerned government agencies -- NRB, Finance Ministry, Nepal Stock Exchange (Nepse) and Securities Board of Nepal (SEBON) - to come up with consolidated measures to revive the stock market.
Trading of stock at Nepse was halted for the second straight day on Monday as the investors did not place orders for stock transaction. As a part of their protest, the investors are urging the stockbrokers to express solidarity to their protest by closing their transactions on Tuesday. They have already announced to shut down the main server of Nepse on Wednesday and Thursday.
Apart from calls to ease margin lending policy, the investors have demanded the government to increase the number of stockbrokers and suspend the process to convert 19 percent promoters shares to ordinary shares among others.
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