Finance Committee Directs Government and SEBON to Bring New Securities Bill to Parliament Immediately
The Finance Committee of the Federal Parliament has directed the government and the Securities Board of Nepal (SEBON) to immediately draft and present a new securities bill in Parliament to make the capital market modern, transparent, and investment-friendly. The committee has also issued strict directives on IPO grading, NEPSE restructuring, controlling artificial manipulation in the market, and filling vacant CEO positions.
Kathmandu. The Finance Committee of the Federal Parliament has directed the government and the Securities Board of Nepal (SEBON) to immediately draft and present a new securities bill in Parliament.
After discussions with capital market stakeholders, the committee concluded that new legal provisions are necessary to make Nepal's capital market modern, technology-friendly, well-organized, transparent, credible, and investment-friendly.
Committee Chair Dr. Krishna Hari Budhathoki informed that directives have been given to bring the bill in a manner that clearly defines the roles, responsibilities, and accountability of relevant bodies from securities issuance, listing, market operation, and regulation to the protection of investor interests.
The committee has directed SEBON to grade and prioritize companies before IPO issuance based on capital adequacy, technology, net worth, balance sheet, and returns, among other factors. It has also been asked to review the provisions regarding share ownership to be held by founders.
Similarly, the committee has directed to accelerate the restructuring process of the Nepal Stock Exchange (NEPSE) and to resolve obstructions seen in online trading, network, and data systems. The Ministry of Finance, SEBON, and NEPSE have been told to ensure the highest level of cybersecurity alongside technological upgrades.
The committee has also instructed strict measures to control artificial manipulation in the secondary market. SEBON and NEPSE have been directed to closely monitor activities such as cornering, circular trading, and 'pump and dump' and to take immediate action against individuals or companies involved.
Likewise, pointing out that the positions of Chief Executive Officers at NEPSE and CDS and Clearing Limited (CDSC) have remained vacant for a long time, the Ministry of Finance has been directed to immediately initiate the process of filling these positions.