The Securities Board of Nepal (SEBON) has directed the Nepal Stock Exchange (NEPSE) to discontinue the ‘All or None (AON)’ facility in the Trade Management System (TMS). This will deter manipulators from inflating demand for shares on the secondary market.
At the moment, investors have the option of using AON when purchasing and selling shares. This means merely buying and selling the quantity of shares you want to buy or sell. When an investor buys or sells 10,000 shares, he can select option ‘AON.’ This signifies that he or she will only buy or sell the requested 10,000 shares all at once.
As a result of this facility, certain investors and brokers have increased their tendency to create artificial demand for shares in the market. As a result, the price of the company’s shares has risen due to increasing demand in the market depth. This demand is not for actual stock purchases. Because the volume of such demand is rather significant, they are rarely carried out.