A New Stock Exchange is Set to be Established; What are the Amendments Made By the Council in the Securities Exchange Operation Regulations 2064?

The opening of a new stock exchange has received official approval from the government. The Cabinet meeting held on Monday resulted in changes to the Securities Operating Regulations 2064.

A new stock exchange is set to be established after the Council of Ministers approved the amendment proposal that had been sent to the Ministry of Finance by the Securities Board (SEBON).

According to sources, before the elections, the new stock exchange will reportedly receive its license. Although a private sector stock exchange has been discussed for a while, it hasn't yet been put into action.

Amendments in the Securities Operating Regulations 2064:

1. The board modified the requirements by choosing to raise the paid-up capital to Rs. 3 Arba. The stock exchange only has Rs. 5 Crores in paid-up capital at the moment.
2. The new stock exchange only allows for a single shareholder for maximum holding of 15%. Earlier, there was a provision to keep only 10%.
3. Institutional investors are now also permitted to invest in the stock market according to new provisions in the legislation. Investments were previously restricted to banks, financial institutions, stockbrokers, and publicly traded enterprises.