The Securities Board of Nepal (Sebon) has moved forward its plan to license a new stock exchange company.
According to the Sebon, it endorsed an amendment to the Securities Markets Regulations 2007 last week and sent it to the Ministry of Finance for final approval. In the proposed provision, the new stock exchange company should have a paid-up capital of Rs 3 billion at minimum, up from the existing capital base of Rs 50 million.
A stock exchange is a marketplace where securities such as stocks and bonds are purchased and sold. As of now, only Nepal Stock Exchange (Nepse) has been working as the front line regulator of securities trading in the country. Citing an expanding volume of the stock trading recently, stakeholders have been demanding the government authorities issue the license to a new market player.
In its revised regulations, Sebon has also sought to allow any private and public limited company to invest in the new stock exchange company. The investor organization can hold up to 15 percent of the shares in the proposed stock exchange.
