Plans for New Stock Exchange in Limbo after Government's Suspension of Licensing Procedures

The government has decided to cancel the plan for operation of the new stock exchanges.

Earlier, the Securities Board of Nepal (SEBON) had published a notice asking qualified institutions to submit applications to attain licenses for the operation of a new stock exchange.

Following the notice, three companies including Himalayan Stock Exchange, National Stock Exchange Of Nepal, and Annapurna Stock Exchange Limited had submitted applications for the new stock exchange license. However, only one candidate among the pool could have received permit from SEBON to operate the new stock exchange.

SEBON had set an ultimatum of only ten days for the interested companies to submit their applications, drawing much flak.

A writ had been filed in the Patan High Court contesting the decision of SEBON to have only provided a deadline of 10 days to submit application for the attainment of new licenses for the operation of new stock exchange.

The High Court had announced for both parties to be present in the court for discusion into the matter on Jestha 1.

However, the decision of cancellation of new stock exchange has come prior to that.

The investors realizing the need for a new stock exchange had submitted a memorandum expression the same. Therefore, it can be assumed that the governments' decision to revoke the plans for the operation of new stock exchange and all prior processes is contrary to investor sentiment.