June 13, 2021 | Investopaper
Securities Board of Nepal (SEBON) has instructed the Nepal Stock Exchange (NEPSE) to stop the facility called ‘All or None (AON)’ in the Trade Management System (TMS). This will discourage the manipulators to create artificial demand for shares in the secondary market.
At current, investors have the option of AON when buying and selling shares. This means buying and selling only shares equal to the number of shares you want to buy or sell. For example, when an investor buys or sells a 10,000 shares, he can choose an option ‘AON’. This means that s/he only will buy or sell the ordered 10,000 shares all at once.
Due to this facility, the tendency of some investors and brokers to show artificial demand for shares in the market has increased. In doing so, the price of the shares of the company has been increased by showing more demand in the market depth. This demand is not for the real purchase of shares. Since, the volume of such demand is relatively high, they are rarely executed.