Investor groups call for suspension of trading amid political turmoil

KATHMANDU: Five investor associations have called on the Nepal Stock Exchange (NEPSE) to halt trading until the country’s political situation stabilizes, warning that continued volatility could inflict irreversible losses on small and new investors.

In a joint letter to the Securities Board of Nepal (SEBON), the groups said the ongoing unrest will trigger panic selling in the secondary market, raising fears of a broader collapse.

“Given the current crisis, we are compelled to write this letter in the interest of the wider capital market and the sentiments of general investors,” the statement read. “Unnecessary selling pressure is putting the entire market at risk of collapse, which could cause irreparable damage, particularly to small and new investors. For the stability of the capital market and protection of millions of investors, temporarily suspending trading is the only prudent option.”

The organizations also urged SEBON to swiftly address investor concerns and move forward with reforms to restore confidence.

The signatories of the appeal include Dr. Keshav Prasad Shrestha, President of Nepal Share Market Investors’ Association; Prashash Rajoure, General Secretary of Nepal Securities Investors’ Association; Ritu Jung Jisi, President of Ordinary Investors’ Association Nepal; Ghanshyam Pandey, President of Nepal Shareholders’ Association; and Deepak Karki, President of the General Investors’ Association.