Stock Brokers Association of Nepal Suspends All Services Amid Gen-Z Protests and Unrest
9th September 2025, Kathmandu
The Stock Brokers Association of Nepal (SBAN) has announced the suspension of all its services nationwide, a direct consequence of the extraordinary circumstances and public unrest caused by the ongoing Gen-Z-led protests.
SBAN Suspends All Services
The association cited the violent incidents, including the tragic loss of life, that occurred during the demonstrations on Monday, as well as the imposition of curfews in major areas of Kathmandu Valley. The decision to halt services is a forced measure, as the security situation has made it unsafe for staff to operate offices and for clients to access brokerage services. This widespread suspension has brought trading, settlement, and clearing transactions to a standstill, creating significant disruption in Nepal’s capital market.
Rationale for the Suspension
According to the statement from SBAN President Sagar Dhakal, the primary reason for the service suspension is the security situation on the ground. The violent clashes between protesters and security forces, which led to injuries and casualties, combined with the government’s declaration of curfews, have rendered it impossible for brokerage firms to conduct normal business operations. Brokerage offices, which require physical access for staff and clients, cannot function effectively under such conditions. The association’s statement emphasized that this was not a voluntary move but a necessary step to ensure the safety of both their employees and the investing public. The SBAN also expressed condolences for the lives lost and urged authorities to handle public protests with more restraint and responsibility in the future. This call for responsible governance highlights the broader societal impact of the protests, which extends beyond political grievances to economic and social stability.
The suspension of services is a clear and direct ripple effect of the political unrest and instability. It serves as a stark reminder of the close relationship between political stability and economic confidence, particularly within a fragile capital market like Nepal’s. While the Gen-Z protests began as a non-political, independent movement against corruption and misgovernance, their escalation into violent street clashes has now had a tangible, negative impact on the financial sector.
Immediate Impact on Capital Market Activities
The suspension of services by SBAN has effectively halted all secondary market activities for a significant portion of the investing community. Investors are currently unable to:
Buy and sell securities: The core function of a stock market has been suspended, preventing both short-term traders and long-term investors from executing their strategies.
Access trading accounts: Investors cannot check their portfolios, make updates, or monitor the live market, leading to a loss of control and increased uncertainty.
Execute settlement and clearing transactions: The essential post-trade processes that ensure a transaction is completed cannot take place, which could lead to delays and backlogs once services resume.
Market analysts have warned that a prolonged suspension of brokerage services could have severe consequences for Nepal’s capital market. It could lead to a reduction in liquidity, as there are no buyers or sellers to trade securities. This lack of activity could create a state of panic, particularly among retail investors who rely on daily trading to manage their positions. For institutional investors, including mutual funds and banks, the suspension creates challenges in managing liquidity and implementing their market strategies. The disruption could also negatively impact investor sentiment, both domestically and internationally, as it paints a picture of a volatile and unpredictable market.
Previous research and analysis of Nepal’s capital market have consistently shown a strong correlation between political instability and market performance. During periods of political uncertainty, investor confidence tends to decline, leading to reduced trading volumes and a more volatile market. The current situation, where the entire brokerage system has been shut down, represents a more severe form of disruption than a simple market downturn. It underscores how critical a stable political environment is for the proper functioning of financial markets.
The Path Forward
The Stock Brokers Association of Nepal has not specified a definitive date for the resumption of services, stating that operations will restart only when the environment becomes safe and stable. The association’s call for the government to take proactive measures to restore law and order is a plea not just for public safety but also for the preservation of economic stability. The Nepal Stock Exchange (NEPSE) and other regulatory bodies are expected to closely monitor the situation and may need to consider measures to protect market integrity once trading resumes. Such measures could include temporary circuit breakers or a phased return to trading to prevent a rush of panic selling.
In the meantime, the suspension of brokerage services has left investors in a state of limbo. While the safety of staff and clients is a priority, the economic consequences of this disruption are significant. This event serves as a powerful reminder that in an increasingly interconnected economy, social and political unrest can have immediate and far-reaching effects on financial systems.
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