Kathmandu:The Finance Committee of the House of Representatives has instructed relevant bodies to enhance Nepal’s securities market by modernizing its operations and ensuring transparency and investor protection.
According to National News Agency Nepal, the committee convened at Singha Durbar and decided to urge the Finance Ministry and the Securities Board of Nepal (SEBON) to draft a new securities bill. This proposed legislation will clarify the roles and responsibilities of SEBON, the Nepal Stock Exchange Limited (NEPSE), and CDS and Clearing Limited, with the aim of presenting it to the federal parliament.
Committee President Dr. Krishna Hari Budhathoki emphasized the directive to SEBON to categorize companies based on financial and technological criteria before approving initial public offerings (IPOs). Additionally, there will be a review of promoter share ownership requirements.
The committee further directed the Finance Ministry, SEBON, and NEPSE to upgrade the NEPSE online trading system and address technological disruptions. These improvements aim to protect investors and enhance government revenue while ensuring robust cybersecurity measures.
The meeting also called for the elimination of market manipulation tactics such as cornering, circular trading, and pump and dump schemes. Immediate action against individuals and companies involved in such practices was urged, through thorough inspection and monitoring.
Finally, the committee requested that the Finance Ministry expedite the appointment process for vacant positions, including the chief executive officer roles at NEPSE and CDS and Clearing Limited, which have remained unfilled for an extended period.