Nepal's Securities Board Endorses Nine-Point Work Plan to Strengthen Secondary Market

Strategic Insights -

The Securities Board of Nepal (SEBON) has adopted a comprehensive nine-point plan to implement the recommendations of the government-formed panel, aiming to revitalize Nepal's secondary market. This move follows the financial market crash on September 8-9, which prompted Finance Minister Rameshore Khanal to establish a four-member task force. Led by Rupesh KC, acting executive director of SEBON, the panel proposed over three dozen measures, including 15 short-term, 15 medium-term, and seven long-term recommendations.

Key Takeaways:

  • The Securities Board of Nepal (SEBON) has endorsed a nine-point work plan to implement the recommendations of the government-formed panel, led by Rupesh KC, acting executive director of SEBON.
  • The plan includes allowing investors to open more than two demat accounts by October end, with the rest of the provisions to be implemented by November end.
  • The regulatory body has targeted to carry out margin trading through stock brokerage by mid-November.
  • The panel proposed over three dozen measures, including 15 short-term, 15 medium-term, and seven long-term recommendations.
  • Key suggestions include annulling the threshold on loans against shares, extending deadlines for interest payments on margin loans, and reviewing capital gains tax provisions.
  • The Ministry of Finance (MoF) directed the line government agencies to implement recommendations of the task force.
  • The task force was established in response to the financial market crash on September 8-9, which prompted Finance Minister Rameshore Khanal to take action.
  • SEBON aims to restore investor confidence and strengthen the performance of Nepal's secondary market.

Statistics:

  • Over three dozen measures proposed by the task force, including 15 short-term, 15 medium-term, and seven long-term recommendations.
  • The restored investor confidence target of SEBON.
  • Expected completion of all provision implementation by November end.
  • Targeted opening of more than two demat accounts by October end.
  • Margin trading through stock brokerage to begin by mid-November.

Sources:

  • Nepal, Oct. 15 -- The Securities Board of Nepal (SEBON) has endorsed a nine-point work plan to implement the recommendations of the government formed panel to strengthen the performance of Nepal's secondary market.
  • Related story Sebon to endorse legal provisions to permit NRNs' investment in ICFCs
  • Published by HT Digital Content Services with permission from Republica.