ADB assistance to capital market development
KATHMANDU:
The capital market regulator will be drafting new regulations for merger and listing with the assistance of Asian Development Bank (ADB).
Strengthening the regulatory capacity of Securities Board of Nepal (Sebon) is one of the components of the ADB project ‘Capital Market and Infrastructure Capacity Support Project’.
ADB will help the institutional capacity building of Nepali capital market regulator as a part of project.
“The project will help Sebon in preparing and implementing regulations and guidelines like regulation for listing and trading of securities, regulation for merger and acquisition of listed companies, corporate governance norms,” said director of Sebon Niraj Giri.
Sebon has been trying to prepare regulation for the stock listing and trading that will design a broader framework for the stock exchange directing the terms of listing, de-listing and Over-The-Counter (OTC) trade, and other investment instruments.
The regulator has also felt the need of drafting proper regulation regarding the merger and acquisition of listed companies.
“The work for the regulations is in preliminary stage and the project — that will be starting in six months — will be highly helpful in drafting these regulations,” he expressed.
The agreement has already been signed between ADB and the government in June for $25 million aid for the project that will work in co-ordination with Sebon’s Capital Market Five Year Master Plan.
The consultant has already prepared the Capital Market Five Year Master Plan that will be implemented on phase-wise basis. It is supposed to revamp the capital market scenario from the present stage and make it more vibrant and diverse.
The consultant has basically suggested allowing the companies to go through book building, attracting real sector companies to get listed, removing distinction between promoters’ shares and providing autonomy to the regulator.
ABD’s project is also helping Ministry of Finance (MoF) to establish a separate Public Debt Management Office to boost the bond market that has never seen trading i n the domestic secondary market.
The Debt Management Office is supposed to prepare the infrastructures required for developing the bond market that will bring structural changes in the government bond market.
Currently, Nepal Rastra Bank (NRB)’s Public Debt Management Department issues the government bonds along with other short term debt instruments to meet government’s debt financing need.
Source: THT
The capital market regulator will be drafting new regulations for merger and listing with the assistance of Asian Development Bank (ADB).
Strengthening the regulatory capacity of Securities Board of Nepal (Sebon) is one of the components of the ADB project ‘Capital Market and Infrastructure Capacity Support Project’.
ADB will help the institutional capacity building of Nepali capital market regulator as a part of project.
“The project will help Sebon in preparing and implementing regulations and guidelines like regulation for listing and trading of securities, regulation for merger and acquisition of listed companies, corporate governance norms,” said director of Sebon Niraj Giri.
Sebon has been trying to prepare regulation for the stock listing and trading that will design a broader framework for the stock exchange directing the terms of listing, de-listing and Over-The-Counter (OTC) trade, and other investment instruments.
The regulator has also felt the need of drafting proper regulation regarding the merger and acquisition of listed companies.
“The work for the regulations is in preliminary stage and the project — that will be starting in six months — will be highly helpful in drafting these regulations,” he expressed.
The agreement has already been signed between ADB and the government in June for $25 million aid for the project that will work in co-ordination with Sebon’s Capital Market Five Year Master Plan.
The consultant has already prepared the Capital Market Five Year Master Plan that will be implemented on phase-wise basis. It is supposed to revamp the capital market scenario from the present stage and make it more vibrant and diverse.
The consultant has basically suggested allowing the companies to go through book building, attracting real sector companies to get listed, removing distinction between promoters’ shares and providing autonomy to the regulator.
ABD’s project is also helping Ministry of Finance (MoF) to establish a separate Public Debt Management Office to boost the bond market that has never seen trading i n the domestic secondary market.
The Debt Management Office is supposed to prepare the infrastructures required for developing the bond market that will bring structural changes in the government bond market.
Currently, Nepal Rastra Bank (NRB)’s Public Debt Management Department issues the government bonds along with other short term debt instruments to meet government’s debt financing need.
Source: THT
