Wednesday, April 3, 2013

Stock Market or painful Investment in Nepal


Stock Market are probably the major financial markets most typically associated with State and has it's direct relationship due to State's economy. Changes for the overall design have a large shapes interest rates and inflation having an effect on the Stock or married life markets. Thus, Stock Market is often observed for being an indicator or the mirror of economic progress the Country.

So, what reflection does Nepalese Stock Market is wearing State's economy and advancement? It's 468 NEPSE List!

Does it really indicate sordid economic scenario and falling boost in the State? The answer is "NO"

Considering Nepal Stock Market for economic indicator would be nothing but a blunder because whole lot Nepalese Stock Market graphs little according to the function of demand and supply or in the crawling improvement in the State but draws read more about the pooling and the matching of what are known as big investors and other investing groups which are usually engaged in conducting malpractices.

Stock Market being a sensitive even though many economy and a State's financial vertebral column yet can be simply influenced by market thugs with regard to personal benefits. But, the foremost disappointing scene comes to figure out when the Government doesn't act against them or perhaps it is wedge loop holes, but alternatively observes the Stock Market with an unconstructive vision and labels because a gambling house. And the Central Bank adds a little bit more by blindly imposing newer clauses to demoralize investors and to slow up the market pace.

This unnatural and an uncommon market correction practice of NRB in which may be observed in past years rrncluding a frequent change over the bare minimum loan clauses and monitory policies mainly in the bullish period clearly way the pessimistic outlook of this Government towards the Stock Market. However, the clinging market holds itself hard inside of the organization 500 index for month or two suffocating many small real estate investors, whereas no responsible bodies proves its keen interest to make sure markets recompense even by giving temporary flexibility in the clauses or by giving some other possible ways to grant a relief.

Similarly, the weak management and irresponsibility of Nepal Stock Exchange and Central Bank is certainly observe when it without knowing it properly ignores the correlation of primary and the secondary market as it repeatedly grants permission to offer IPO's even when your secondary market struggles in its bristling bearish age. If only IPO's are proffered to the systematic and a scientific way knowing the situation of secondary to then sudden drop in Stock's graph really need to be minimized which is obligatory also another stylish relief doer for both small and large investors.

Stock Market is an undeniable a part of State's economy and it's actually negligence can severely harm express and the people. The best case would could possibly be the Wall Street Crash of 1929-1932 in United states of america. This rapid decline confident enough Stock Markets severely affected commercial enterprise and investors and your organization confidence. It also caused banks to get rid of money and this crash was undoubtedly key point that contributed to how much time and severity of any Depression in USA. Nevertheless, still after such quite a long time of market crash Government and various responsible bodies are involved in their internal conflict because it is heartbreaking.

Although, the news of displaying Central depository system (CDS) and new brokers above the future has uplifted investor's expectation and its promising output the story still has got a long wait. Central depository system (CDS) is the better way for Stock management that might eventually replace the current but traditional habit of holding and moving a further share scrip physically or a complete computerized based data entry system that will finally cut off the likelihood of scrip misplaced and suffering or forged.

But, of such new custom there are new challenges too. Government should work on building awareness as this system is new and although it will likely be an ease for young investors but they can be sophisticated to the suitable aged investors who are not familiar with computer system. So, the question arises which the Government and the Stock Market might monitor or handle this CDS as it is expected by the the lender?

Furthermore, the hassle that tad investors are facing from the Stock brokers are had to be minimized with the admission of the latest brokers which has though brought an engaged relief for small investors the particular State going through an unusual internal clash i do believe small investors have to face some more days of numerous hopeless attitudes of clever brokers.

We hope the future government will help you make a our Stock Exchange an improved and a safe investing place clearing the loop holes and taking heavy duty actions against malpractices giving Stock Market a financial standard and not a Gambling establishment.

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