CIT jumping bureaucratic hoops of NEPSE & SEBON to get approval to begin its role in the secondary market

In the Budget of fiscal year 2072/73, the then Finance Minister Dr. Ram Sharan Mahat has aimed to activate the role of Citizen Investment Trust (CIT) to make the only secondary market of Nepal more systematic. As a result, CIT has taken necessary steps to fulfill the agendas put forth in the budget for the current fiscal year. Sushil Kumar Aryal, Chief Manager of CIT, said, “CIT has already filed an application with NEPSE and SEBON regarding this issue. Once we get approval from both the organizations we are ready to play our part as outlined in the budget for the fiscal year 2072/73.” Sitaram Thapaliya, General Manager of Nepal Stock Exchange said, “In regards to CIT, a separate window is needed for market maker so there needs to be made some changes in the system, we are in the discussion phase right now.” As the process also depends on system provider, we cannot say how much time it will take but we trying to make it happen as soon as possible, Mr. Thapaliya added. Niraj Giri, Spokesperson at Securities Board of Nepal said, “We are carrying out the study to issue the license, there are certain documents that needs to be submitted by Citizen Investment Trust which also should contain a recommendation letter by Nepal Stock Exchange Limited.” We will soon be sending them a letter stating the documents that they need to submit in order to get the license, Giri added. The NEPSE and SEBON are unsynchronized on this issue. The issue of CIT playing active role to make the secondary market more systematic has failed to get the needed momentum and attention from these organizations.  If this pace of approval process continues, it would be virtually impossible for CIT to play its role in the secondary market as outlined in the budget for FY 2072/73 within the stipulated time frame