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If #$@ want to save NEPSE using market maker

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Member
Registered: Oct 2013
Posts: 7912
समावेशी आर्थिक वृद्धिको एजेण्डा बनाउँदा धेरै मान्छे पूँजी बजारमा सहभागी होउन् भन्ने पनि चाहेका छौं। पूँजी बजारलई समावेशी आर्थिक वृद्धिको मोडेलको रुपमा पनि लान खोजेका छौं। त्यही भएर त जलस्रोतमा धेरै शेयरधनीहरु भएका छन्। गाउँगाउँमा शेयरधनी छन्। सबैको शेयर लिस्टेड हुन्छ बजारमा। राष्ट्रिय पूँजी निर्माण गर्ने भन्ने कुरा एमालेको घोषणापत्रैमा लेखिएको छ। बैंकिङ च्यानलका साथै राष्ट्रिय पूँजी निर्माण शेयर बजारबाट पनि गर्ने भन्ने हो।

मान्छेको उपभोगमा जाने पैसा, सम्पतिका रुपमा जाने पैसालाई फाइनान्सियलाईज गर्ने भनिएको छ। यो गरेपछि मात्रै कहाँ एलोकेट गर्ने भन्ने निश्चित हुन्छ। यसका लागि शेयर बजार अगाडि बढ्नु पर्छ, स्थायित्व हुनु पर्छ। तर स्वस्थ ढंगले।


http://bizmandu.com/content/-30632.html


To involve general public into share market, educate them about investing, provide them with loan and most importantly make Share market stable.

To make share market stable, Market maker is the must.

Govt. institutions like NRB, sebon, nepse should be made accountable. Punish them if they use their power to crash the market.

Investing a few lakh today for long term will make nepalese's financial future secure in 10/15 year.


ITS NOW OR NEVER.
Member
Registered: Aug 2017
Posts: 71
Location: Chandigarh, India
Fear is running high. Now, everyone start believing NEPSE index drift much lower. This is perfect recipe for Short term bottom. Probably Short term bottom already made @1452 or may take next major support near 1440-1430. Banking index has significant support @1220. Short term bounce back should start soon. Watch my video for detail analysis of Nepal Stock market (NEPSE) index and Banking sub index.

Click below for Video;

https://youtu.be/-TcOZ5HWPyk
_______________
Bishnu Prasad Basyal, CFA
Member
Registered: Oct 2013
Posts: 7912
Govt could introduce market maker from private sector- both from public like mutual fund and from institutions like banks, insurance beside govt owned like pension fund.
Govt could also invite foreign institutions.

Min capital- 3 arab

Condition- they need to take permission to sell all shares, and they should get tax freedom and preference in IPO and discount in premium IPO.

-----------------------------------
if #$%# in finance minister, NEPSE, Sebon, NRB really want to save public investment aka NEPSE aka share market using market maker, following could be the formula:

POTENTIAL MARKET MAKERS: pension funds, BFIs reserve they cant distribute, army/police fund, hydro projects fund, insurance fund etc.
Tell them, if they have already invested in shares they can sell them, but to buy/invest they can only invest as market maker if not @%@% off and they have to sign a deal/have contract with SEBON.
Hydro and BFIs can use reserve, insurance can use certain percent of their fund.

BUYING/SELLING POINT: There should be a formula where they can buy and sell and that formula should be PE ratio which should be determined considering average interest rate of bfis and average growth for three year of the company.

Let's take A class company (they should only be able to invest in A class company) whose average growth is 25% for last three year::::


Stop selling PE ratio- 30 below

Compulsory buying if they have money to invest PE ratio-20 below

Freely Buy and sell PE ratio- 31-50

Stop buying PE ratio- 50 above

Compulsory selling PE ratio-70 above



If those market makers need to sell outside the PE ratio, they should take permission from Sebon. If average growth falls below 1/3 of average, all of a sudden, they can sell.
Member
Registered: Oct 2017
Posts: 2148
Many People are not aware of the actual concept of Market Maker !!
Market Maker is basically designed then there in no liquidity in the stock.
1. there is no frequent trading in the stock due to which a stock is unable to get its actual market value here we can take a case of Salt trading Corporation whose Mkt value is far ahead then the last traded price but due to nepse restriction it doesn't trade. even if it trades its via matching where a buyer has to pay additional premium through grey market could be 100-200% premium to last trading price where Govt losses revenue on Capital gain TAX and symalteniously revenue loss to others entities also like broker / sebon/ nepse etc. etc.

2. If share is over valued MM can sell stocks but what if it doesn't has that stock with him. He should have a felicity to lend shares from the custodians. Does current by laws allows that.

3. There is no Provision of short selling of stocks shorting and closing the position at end of Day.

4. If there is a bad delivery of share then there no system of auction of shares. Even if during auction he is unable to buy share then there should be a mechanism for cash settlement.
for Eg. Market Maker sold 100 shares of Company X @ 500 assuming over valued. But we has no shares to give to buyer who has bought @ 500. but he has to give shares to buyer so he participate in auction market to buy shares but in auction market also he find no seller for company X. now he is unable to get shares either he has option take 500 shares from custodial to settle the buyer and later buy back 500 shares and give back to custodial. Else he to has to settle as cash paying additional amount to seller as fixed by sebon or nepse could be 10% to 20% premium to their traded price of 500.

5. there are multiple things for MM concepts cant be only explained via blog/ forum.
Member
Registered: Oct 2013
Posts: 7912
'मार्केट मेकर ' लाई तत्काल पूँजी बजारमा भित्र्याइयोस : इन्भेष्टर्स फोरम
http://merolagani.com/NewsDetail.aspx?newsID=36260


if #$%# in finance minister, NEPSE, Sebon, NRB really want to save public investment aka NEPSE aka share market using market maker, following could be the formula:

POTENTIAL MARKET MAKERS: pension funds, BFIs reserve they cant distribute, army/police fund, hydro projects fund, insurance fund etc.
Tell them, if they have already invested in shares they can sell them, but to buy/invest they can only invest as market maker if not @%@% off and they have to sign a deal/have contract with SEBON.
Hydro and BFIs can use reserve, insurance can use certain percent of their fund.

BUYING/SELLING POINT: There should be a formula where they can buy and sell and that formula should be PE ratio which should be determined considering average interest rate of bfis and average growth for three year of the company.

Let's take A class company (they should only be able to invest in A class company) whose average growth is 25% for last three year::::


Stop selling PE ratio- 30 below

Compulsory buying if they have money to invest PE ratio-20 below

Freely Buy and sell PE ratio- 31-50

Stop buying PE ratio- 50 above

Compulsory selling PE ratio-70 above



If those market makers need to sell outside the PE ratio, they should take permission from Sebon. If average growth falls below 1/3 of average, all of a sudden, they can sell.


In US, if institutional investors sell to crash market, CIA would kill them.
Member
Registered: Oct 2013
Posts: 7912
नागरिक लगानी कोषलाई कहिले बनाउने बजार निर्माता ? फिटिक्कै अघि बढेन काम - See more at: http://www.nepalipaisa.com/NewsDetail.aspx///id/16706#sthash.y1XjGeeL.dpuf
Member
Registered: Oct 2013
Posts: 7912
सेयर बजार सुधार्न धितोपत्रको यस्तो प्रस्ताव : दीर्घकालीन लगानीकर्ता नखोजे बजार जोखिममा पर्छ
http://www.arthasansar.com/news/2773
Member
Registered: Oct 2013
Posts: 7912
यसरी सम्भव हुन्छ धितोपत्र बजारमा दैनिक २ अर्बको कारोबार - See more at: http://www.bikashnews.com/2017/03/06/53324.html#sthash.gbsxvffm.dpuf

- daily regular transaction can not reach 2 billion without stable market.

and for stable market, NEPSE needs around 50-100 billion size of market maker and whole sale (broker) lender and broker, bfis/insurance/mutual fund investors should be prevented from manipulating the market.
Member
Registered: Oct 2013
Posts: 7912
Before mutual fund, corporate investors like BFIs/insurance invests- close family/friends of the high level officials/promoters buy then they buy, and

their family/friends sell before mutual fund, corporate investors sell.

Make mutual fund, BFIs/insurance 'MARKET MAKER' or make it illegal for them to invest in shares.
Member
Registered: Oct 2013
Posts: 7912
Thank you Ramesh N ji, I would like to copy and paste your comment. Thanks.
Member
Registered: Mar 2014
Posts: 323
The Rising Sir ko kuraharu yekdam ramro lagchha. Dherai samaya pachhi hijo yo forum here.
Mero bichar ma Main manipulator are sebon, NRB and other regulator.
I remember that when market was in above 1800 dr Rebat karki's article in Karobar dailly he said Big investor sold their share.
Now they are trying to buy in low level. Will get profit in 5-10 fold in some years.
So they are not in favor of investor now.
They publish publish release weekly when market was in peak.
Now they are patient.
In other country when market decrease bellow 20% or in market crash. Whole government improve market.
Punish in involved persons.
In low price NRB should compromise in margin lending and liquidity.
Member
Registered: Oct 2013
Posts: 7912
Pension fund was ready to act as market maker, they asked for their own port to do trading.

Why Sebon, Nepse still have not given pension fund right to act as market maker- I think there is a big criminal intention behind not giving them right.

Market maker should have their own trading port, cause I believe, at present brokers are dumping shares of those small investor who go to broker to sell their share. Behind current crash, brokers are also involved. Criminal brokers are using general public share to crash the market.

So, all those who wants to be market maker should also get their trading port.
Member
Registered: May 2014
Posts: 217
The Rising Sun ji you have more knowledge than our NRB Governor.
Member
Registered: Oct 2013
Posts: 7912
if #$%# in finance minister, NEPSE, Sebon, NRB really want to save public investment aka NEPSE aka share market using market maker, following could be the formula:

POTENTIAL MARKET MAKERS: pension funds, BFIs reserve they cant distribute, army/police fund, hydro projects fund, insurance fund etc.
Tell them, if they have already invested in shares they can sell them, but to buy/invest they can only invest as market maker if not @%@% off and they have to sign a deal/have contract with SEBON.
Hydro and BFIs can use reserve, insurance can use certain percent of their fund.

BUYING/SELLING POINT: There should be a formula where they can buy and sell and that formula should be PE ratio which should be determined considering average interest rate of bfis and average growth for three year of the company.

Let's take A class company (they should only be able to invest in A class company) whose average growth is 25% for last three year::::


Stop selling PE ratio- 30 below

Compulsory buying if they have money to invest PE ratio-20 below

Freely Buy and sell PE ratio- 31-50

Stop buying PE ratio- 50 above

Compulsory selling PE ratio-70 above



If those market makers need to sell outside the PE ratio, they should take permission from Sebon. If average growth falls below 1/3 of average, all of a sudden, they can sell.


In US, if institutional investors sell to crash market, CIA would kill them.
« Last edit by The Rising Sun on Wed Feb 08, 2017 11:13 pm. »

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