Kathmandu. According to the latest data of CDAC, in 2 months of the financial year 2081/82, investors have paid a fine of 51.2 million rupees due to closeout. From this, it appears that investors are still not aware of share trading or share education has not reached them effectively.

During the last year in 2080/81, investors paid a total of Rs 66.5 million 27 thousand. However, the size of the amount paid due to closeout has also increased due to the fact that the business has increased in these two months. However, as the number of investors in the market increases, it can be easily estimated that such a problem has arisen because they do not have complete knowledge about the business.

In the financial year 2079/80, investors paid 417,000 rupees as a 20 percent penalty for not filing EDIS on time. 25 percent of this amount goes to the contingency penalty fund and the rest is given to the buying investors by the brokers.

According to CDAC, in the financial year 2077/78, investors paid 153.4 million rupees more for the closeout. Similarly, in the financial year 2078/79, investors paid an amount equal to 97.8 million 94 thousand rupees as a penalty for closeout.

CDSC data shows that in the financial year 2079/80, the penalty paid by investors due to closeout has decreased by more than half. Due to various reasons, investors are often closed out due to the fact that the shares sold are not transferred on time. Within 24 hours of selling shares, it is mandatory to go to 'My Shares' and do EDIS.

How to avoid?

Closeout is the penalty we have to pay if we do not EDIS (transfer of shares) on time after selling the shares. Now CDSC has arranged the settlement of T Plus One. According to this rule, we have to go to my shares and transfer the shares by 3 pm the next day after selling the shares today. Otherwise, a penalty of 20 percent of the total value of the shares sold will have to be paid. However, if the sold shares are transferred within the stipulated time, the closeout can be avoided.

First of all, I should sell the shares according to the balance in my shares. DP holding in TMS may not have actual record. The main reason for the closeout now is the error in TMA's DP holding. It seems that many investors end up in closeout when investors do not pay attention to this error. The second way to avoid closeout is to make a daily note if you have a large transaction. Do not forget to keep the account of sold shares in your note after 3 PM every day and do EDIS immediately after 6 PM on the same day.

The third is to keep your broker tight. The broker can be asked to send a mandatory message to the mobile phone of each transaction. If someone is abroad, it is mandatory to email your business.