At least 3 clearing bank to operate by Baisakh 01, 2073; NEPSE to certify market sensitive information before publication

Securities Board of Nepal (SEBON) has directed Nepal Stock Exchange Ltd. (NEPSE) and CDS and Clearing Ltd. (CDSC) to have at least 3 clearing banks operational by the end of Baisakh 01, 2073. Global IME Bank Ltd. is only the clearing bank operating in the secondary market of Nepal.

SEBON has cited the increase in market size from average daily turnover of Rs 1 crore in 2050 BS to Rs 50 crore at present. The trading in demat form only is also expected to increase the size of the secondary market.  Increase in clearing bank would create competition ending a long held monopoly of one bank. Increasing the number of clearing bank was also one of the  most received suggestions during a recent interaction program organized by SEBON.

SEBON has also directed NEPSE to standardize publication of the market sensitive information provided by the listed companies. NEPSE is preparing to allow the listed companies to upload the information on their web page. As per the issued directive, NEPSE would have to keep the record of the time when information was received and published publicly. Furthermore, it would have to certify the provided information before publishing it in a standard form.