Bond trading to begin at NEPSE

The Nepal Stock Exchange (NEPSE) is to begin bond transactions at the stock market for small investors to trade in government securities from Sunday.

The NEPSE has already initiated dummy trading of bonds in a bid to familiarize brokers and staff about its trading system from Monday this week, reports said quoting an NEPSE official.

The trading of bonds at the NEPSE is set to begin after one-and-a-half years of the announcement. It would enable market to determine the true value of bonds along with their interest rates. Till today, the government securities transactions are restricted to the primary market and their interest rates do not show any changes despite big changes in the economic indicators including inflation and interest rate.

Bond transactions would be carried out from 10:30 a.m. to 11 a.m. in all working days and share transactions would be changed from 12 to 2 p.m.

NEPSE has appointed six brokers and three market makers with paid-up capital of over Rs 2 million to carry out the trading from Monday. For this business, the Nepal Rastra Bank (NRB) has listed development bonds worth Rs 3.75 billion at the stock market. nepalnews.com ia Dec 05 06

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