Capital Market and Commodities Exchange Market Policies and Programs for 2079/80 By SEBON

SEBON (Securities Board of Nepal) [often mistyped by various authors of various websites as SEBIN or Securities Exchange Board of Nepal], has published it's policies and programmes for the FY 2079/80 in relation to the capital market and commodities exchange market.

You should note that capital market instruments are still evolving and have not explored much dimensions in Nepal. You get to transact in shares/ stocks, debentures, debenture stocks, government bonds, mutual funds, preference shares, etc. in Nepal Stock Exchange (NEPSE). Advanced investing and trading mechanisms are yet to be incorporated in Nepal including short selling, derivatives trading, etc. Since, 2075 private equities and venture capitals have been formalized by SEBON which it names as Specialized Funds.

SEBON is the regulator of capital market (via Securities Act, 2063) and the commodities exchange market (via Commodities Exchange Act, 2074).

You can read the document here:

The pdf document of the same can be accessed through the following link:

SEBON Niti tatha Karyakram

Niti tatha Karyakram (Policy & Programs) are papers containing the policies undertaken and the programmes planned by the federal or provincial government or regulators of various industries, etc. 

Some notable points from the documents are enlisted below:

1. Provide for 10% reservation for Nepalese people who have gone for foreign employment and amend the Securities Registration & Issuance Regulations, 2073 for the same (STATUS: This is already implemented with effect from 2079/07/17)
2. Improvements shall be made in the ASBA and C-ASBA Systems in order to facilitate Nepalese people in foreign employments to apply in IPOs (STATUS: Such improvements have already been made)
3. Obtain Technical assistance from the ICAN and develop and implement the formats of various statements and records to be submitted by:
1. Securities Market (only one i.e. NEPSE)
2. Central Depository Company (Only One i.e. CDSC)
3. Listed Corporate Bodies
4. Securities Businesspersons (includes Securities Brokers, Securities Dealers, Merchant Banks, Depository Participants, Mutual Funds, etc.)
4. Merit Based File Approval System to be implemented for the applications presented in the board for registration and approval of securities 
5. AI based RegTech to be used to make the supervisory system robust in order the discourage irregularities in the market

These are just a few points among a bulkly presented list in the document which you can ease yourself with by viewing it from the above mentioned link. We have now some hope that the capital and the commodities exchange market will get some reforms and strengthening to uplift it from the current situation and more investor-oriented & investor-friendly (which it should always be). This is what is expected from the new promising leadership from the board.

@EMBF

Glossary & Notes:

• ASBA : Application Supported By Blocked Amount
• C-ASBA : Centralized Application Supported By Blocked Amount
• IPO : Initial Public Offering
• ICAN : Institute of Chartered Accountants of Nepal (The regulator of accounting profession in Nepal)
• NEPSE : Nepal Stock Exchange Limited
• CDSC : Central Depository Service and Clearing Limited
• All the date used in this article are in Bikram Sambat (B.S.), the national calendar used in Nepal which is about 56.7 years ahead of the Gregorian calendar system
• Currently there are preference shares issued only by the Agricultural Development Bank
• All the private sector debentures are non-secured and non-convertible debentures in Nepal