FAQ
NEPAL STOCK EXCHANGE (NEPSE)
History of Nepse
The securities history in NEPAL dates back to 1937 when Biratnagar Jute Mill and Nepal Bank Limited floated their shares in the market. It was from these two companies the trading of securities started in Nepal. Then in 1964 the Company Act was introduced in the country along with it, Government Bond was also issued for the first time in the same year.
With progress of time, to facilitate and promote growth of capital markets in the country, Securities Exchange Center Limited was established in 1973 with the initiative of the Nepal government and Nepal Rastra Bank. At that time, this center was the only market institution that undertook the responsibilities of brokering, underwriting, managing public issues, creating markets for government bonds and other securities.
However, in 1993 this Securities Exchange Center was converted into Nepal Stock Exchange (NEPSE) under a program to reform capital market. Similarly, in the same year Securities Board of Nepal (SEBON) was also established by government, as an apex regulator of Securities Market in Nepal. Following the formation of SEBON, NEPSE has been working under the jurisdiction of the SEBON. SEBON has been regulating the market under securities Act, 2006 whereas the only secondary capital market of Nepal, Nepse operates under Securities Act 2007.
Introduction of Nepse
Nepal Stock Exchange, in short NEPSE, is established under the company act, operating under Securities Exchange Act, 1983. It opened its trading floor on 13th January 1994. The basic objective of NEPSE is to impart free marketability and liquidity to the government and corporate securities by facilitating transactions in its trading floor through member, market intermediaries, such as broker, market makers etc.
Currently, Nepse is the sole secondary market for listed securities of Nepal. NEPSE building, which is located at Ram Shah Path Kathmandu, provides the trading floor for members to make transactions for their client. Apart from the trading platform, it also looks after protecting investor’s rights, developing a secondary market, enlisting corporate as well as government securities like shares, preferences shares, development bonds and corporate bonds. And also it engages in the issue and redemption of securities and other financial instruments and capital events such as payments of income and dividends.
The shareholder ownership structure of Nepse comprises of Government of Nepal, Nepal Rastra Bank, Nepal Industrial Development Corporation and members. At present there are 226 active listed companies and 49 brokers. They are currently adopting computerized system in the Nepse and the T+3 concepts where transactions and payments are settled within 3 days of an agreement.
Mailing Address
Nepal Stock Exchange
Singha Durbar Plaza, Kathmandu, Nepal
Telephone Numbers
(+977)-1-4250758
(+977)-1-4250735
