Nepalis living outside the country for employment have started trading in the secondary market regularly. The number of investors trading in the secondary market from the states has also increased after the Nepali stock market was traded entirely online.
However, there are various difficulties in doing business in the secondary market. Investors have been facing various problems during the trading period.
With the stock market booming, the problems in the market seem to be increasing with the increase in the number of investors entering the market. It has been found that there are some similarities between the problems of investors doing business at home and those doing business abroad.
Foreign investors are also facing the same problem as domestic investors like, to contact brokers and get paid. Investors are alleging that the shares bought by the investors are not paid on time and the amount of the sold shares does not reach their account on time.
Mr. Suyog Shrestha, who is in the USA for employment, says that investors in the country have to contact the broker easily to get their payment, while investors abroad have to face many difficulties in contacting the broker by phone.
Mr. Shrestha has the experience that the trading period is different at different times as there are different times in Nepal and abroad and even at that time there are problems in brokers, TMS and Meroshera.
He says Nepal’s capital market has improved a lot since the past and is now technology-friendly. He said that it is easy to buy and sell shares from home and any part of the world with the help of mobile.
While saying this, Mr. Shrestha understands that the market is still not completely technology friendly. Mr. Shrestha says that there are many ways to make the market more organized and improved. He says, “As the number of daily Nepse indicators, transaction amount and investors entering the market is increasing, the number of brokers should be increased and the existing brokers should be made more competitive and accountable.”
If he has to do some work while paying commission for doing business, he is saddened by not being able to work on time even after requesting the broker. He says that there is a huge problem of having to work for free even after paying the commission for buying and selling shares. Due to doing business from abroad, it is not possible to physically reach the broker’s office and do his job.
He is of the view that such a problem would be lessened if there were more broker offices. Similarly, he says that he has not been able to take time out of his work to do business due to problems in Nepse’s TMS from time to time. Therefore, it is necessary to immediately modify the system or arrange a new system, he said.
Mr. Rohit Basnet, another investor from Australia, also trades in the Nepal stock market. Mr. Sharma said that he is happy to increase his savings by investing in the market as the Nepal stock market can be done online.
He has experienced that there are many problems in keeping collateral in a broker for doing business abroad. Mr. Sharma says that it is most difficult to contact a broker for trading collateral and other work. They have complained that they do not work online from time to time when they try to do business by taking some time off from work.
Nepal Stock market has improved more than in the past and there has been a development of a positive aspect that Nepalis living in any corner of the world can trade online. However, when there is a problem in the infrastructure used in sensitive areas like the stock market, investors have to suffer to do business. It needs to be improved immediately by modifying the existing infrastructure by the concerned stakeholders.