NEPSE’s Revised Opening Price Range Draws Criticism; Investors Warn This Penalises Growth
Summary
Nepal Stock Exchange's revised opening price range rule for new listed securities has faced criticism from investors who say it penalizes growth and is unscientific. The change limits opening prices to up to three times the face value or net worth under Rs 100, impacting companies like Reliance Spinning Mills Limited.
Key Points
- NEPSE revised the opening price range for new listed securities to a maximum of three times face value or net worth under Rs 100 per share.
- Investors and analysts criticize the new rule as unscientific and detrimental to growth-oriented companies.
- Reliance Spinning Mills Limited’s shares are adversely affected by the revised rule, forcing potential losses for investors.
- Some market participants believe NEPSE intends to curb excessive price surges but the method is flawed and alternatives are suggested.
