SEBON aims for drastic changes to modernize secondary market; Market depth within a month, only dematerialized shares to be traded from Magh 01

Securities Board of Nepal (SEBON) has organized a press meet to unveil various programs to modernize the capital market.

In the press meet Dr. Rewat Bahadur Karki, Chairman of SEBON, Mr. Sitaram Thapaliya, General Manager of NEPSE, and Mr. Dev Prakash Gupta, CEO of CDS and Clearing limited were present.

Dr. Karki laid out the efforts being done to modernize the secondary market of Nepal. He also mentioned that the institutional investors like Citizen Investment Trust would be introduced to the secondary market to provide more stability.

In the press meet Mr. Thapaliaya has, " We are in the testing phase of the market depth system. It is expected to be completed in in 2-3 weeks of time. Once it is completed, we will make it available to public immediately."

Mr. Gupta stressed that the CDSC has the capacity to bring all the listed companies in dematerialization process by the end of Poush, 2072.

1. To implement T+3 strictly after the t modernization of secondary market of Nepal
2. To conduct trading of shares of listed companies in Demat form only after Magh 01, 2072. If any company fails to dematerialize their shares by the end of the Poush 2072, the trading of such companies will be halted from Magh 01, 2072
3. To introduce internet based trading
4. To upgrade/replace trading automation software
5. To allow Non Resident Nepalese (NRN) to trade in the secondary market as the constitution of Nepal 2072 allows NRN to hold dual citizenship
6. To introduce single identity card for investors
7. To make the transaction cost more competitive
8. To streamline broker back office to provide standard services
9. To standardize listing of shares using scientific tools
10. To regulate the commodity market
11. To increase the effectiveness of Over the Counter market
12. To start derivative market by introducing right share renounce in right issue of listed companies
13. To improve the quality of Merchant banker and brokers
14. To provision for Venture capital/Private equity