Sebon forms committee to attract NRNs investment in secondary market; draft to be prepared within couple of months

Foreign Investment Act had enabled foreign institutional investors and Non-Resident Nepali (NRN) citizens to invest through the secondary market by purchasing shares of companies that are listed in the Nepal stock market. However no such directives have been made so far. Now, Securities Board of Nepal (SEBON) has formed a committee to prepare directives for NRN to invest in the secondary market. The committee comprised of the Board itself, Ministry of Finance, Nepal Rastra Bank and member of Nepal Stock Exchange Limited (NEPSE). NRNs can also be a part of the committee. Earlier, CDS and Clearing Limited had provisioned Demat account for NRNs but the way to involve them was not clear so far. The newly formed committee will study on the impact of NRNs representation in secondary market and economy and prepare draft within a couple of months. With this, the Board aims to bring positive change in Nepalese economy with the implementation of these directions. SEBON has been trying out to create a favorable environment to let NRNs investment in the secondary market of Nepal.