The Securities Board of Nepal will give its recommendation to the private sector to establish a new stock exchange only after strengthening the Nepal Stock Exchange. SEBON has yet to reach a decision on the applications submitted by private companies to operate a new stock exchange.
“It has been agreed that only after strengthening NEPSE will the private sector be granted recommendation,” said SEBON chairman Surbir Poudel.
Hopeful stock exchanges National Stock Exchange Limited, Kathmandu Stock Exchange Limited, Nepal Securities & Derivatives Exchange Limited and Himalayan Stock Exchange Limited had applied to SEBON one and a half years ago.
In response to the applications, SEBON had carried out a study to gauge the feasibility for a new stock exchange in Nepal. “Considering the present market scenario, we suggested that the aspiring companies should become one as more would not be viable,” said SEBON chairperson Surbir Poudel. The government’s move to strengthen NEPSE has also delayed SEBON’s decision. The policymakers are still undecided whether the country will need another bourse after NEPSE has been enhanced.
In last year’s budget announcement, the government had emphasized establishing mutual fund companies and a central depository system company to strengthen the stock market. The central depository system is taking shape at NEPSE.
SEBON has recently brought out the CDS Regulation. According to NEPSE, the process of developing software and procuring hardware to operate the CDS is progressing.
The initial enthusiasm among the proposed stock exchanges is sinking as SEBON has been dithering.
“As SEBON has not responded to our expectations, we have also stopped following up with them,” said Kamal Gyawali, one of the promoters of the proposed Kathmandu Stock Limited. He added that they had decided to include 20 stakeholders to set up a single company as SEBON has suggested.
The Stock Exchange Operator Regulation 2008 allows banks and financial institutions, listed companies and security businesspersons (stock brokerage firms and merchant bankers) to operate a stock market.
As per the regulation, the minimum paid-up capital of a proposed stock exchange should be Rs. 50 million, and there should be at least 10 promoters. However, no single company or corporate body will be allowed to own more than 10 percent of the total share capital. As per the regulation, aspiring stock exchange companies have to obtain SEBON’s recommendation to be registered.
source:ekantipur
“It has been agreed that only after strengthening NEPSE will the private sector be granted recommendation,” said SEBON chairman Surbir Poudel.
Hopeful stock exchanges National Stock Exchange Limited, Kathmandu Stock Exchange Limited, Nepal Securities & Derivatives Exchange Limited and Himalayan Stock Exchange Limited had applied to SEBON one and a half years ago.
In response to the applications, SEBON had carried out a study to gauge the feasibility for a new stock exchange in Nepal. “Considering the present market scenario, we suggested that the aspiring companies should become one as more would not be viable,” said SEBON chairperson Surbir Poudel. The government’s move to strengthen NEPSE has also delayed SEBON’s decision. The policymakers are still undecided whether the country will need another bourse after NEPSE has been enhanced.
In last year’s budget announcement, the government had emphasized establishing mutual fund companies and a central depository system company to strengthen the stock market. The central depository system is taking shape at NEPSE.
SEBON has recently brought out the CDS Regulation. According to NEPSE, the process of developing software and procuring hardware to operate the CDS is progressing.
The initial enthusiasm among the proposed stock exchanges is sinking as SEBON has been dithering.
“As SEBON has not responded to our expectations, we have also stopped following up with them,” said Kamal Gyawali, one of the promoters of the proposed Kathmandu Stock Limited. He added that they had decided to include 20 stakeholders to set up a single company as SEBON has suggested.
The Stock Exchange Operator Regulation 2008 allows banks and financial institutions, listed companies and security businesspersons (stock brokerage firms and merchant bankers) to operate a stock market.
As per the regulation, the minimum paid-up capital of a proposed stock exchange should be Rs. 50 million, and there should be at least 10 promoters. However, no single company or corporate body will be allowed to own more than 10 percent of the total share capital. As per the regulation, aspiring stock exchange companies have to obtain SEBON’s recommendation to be registered.
source:ekantipur
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