Stock broker and NEPSE barring Citizen Investment Trust from entering stock dealership

Kathmandu January 19- Stock brokers and NEPSE have been barring Citizen Investment Trust (CIT) that was planning to enter the country's sole stock market aggressively.

Earlier, government had declared to bring CIT as a market maker and stock dealer in the budget announcement of current fiscal year. Based on that, preparations of CIT are in final phase to work as stock broker preliminarily but to prevent CIT from entering the market, stock brokers are lobbying against it in NEPSE which has now reached to Securities Board of Nepal.

SEBON has already informed of providing trading terminal to CIT in order to work as stock broker. CIT itself has carried objective to work in capital market. But NEPSE required giving technical and strategic support for trading terminal.

In this regard, NEPSE denied to provide support to CIT in the correspondence replied to CIT from NEPSE.  After that, SEBON seeks clarification from high officials of NEPSE and directed to make way for CIT to work in capital market. But a high official presented in board deprived of providing trade terminal urging legal complications.

According to sources, officials of NEPSE are manipulating stock brokers to prevent CIT from working as stock broker. Share brokers are lobbying NEPSE to prevent CIT from getting stock dealership instead they are lobbying to give CIT broker license only and they themselves seek stock dealership instead of CIT brokers. While Securities board is insisting NEPSE to give trade terminal to CIT within mid-February.

CIT is planning to invest in capital market in an aggressive manner with Rs. 8 billion basket fund in association with Nepal telecom, Employees provident fund and Rastriya Beema Sansthan. Expectations are high up on the arrival of institutional entrance of CIT as on the one hand, it will increase profitability of CIT as well as its investors and on the other hand, it will expands the size of the market.