SEBON Creates a Committee Team to Determine the Merit Order of the Candidates Applied for Stock Exchange License; What are the Merit Points?
Sun, Apr 30, 2023 5:27 PM on Latest, Stock Market,
A committee has been established by the Securities Board of Nepal (SEBON) to assess the stock exchange applications that have been submitted. The Board of Directors' meeting this morning resulted in the formation of the committee.
The formation of the committee complies with the directives in 2079 regarding the submission of suggestions to the board for the creation of a structured organization for the operation of the securities market. This committee will review each application's thorough business plan before recommending the creation of a formal entity to run the securities market.
The evaluation committee's coordinator is Phinindra Gautam, who sits on the board as a representative of the Ministry of Law, Justice, and Parliamentary Affairs. The evaluating committee also includes Ritesh Shakya and Mukund Kumar Chhetri. The evaluation committee also includes the executive director of SEBON, Muktinath Shrestha, and Deputy executive director, Ambika Prasad Giri.
The committee will decide on the merit order of the candidates and present it to the board after considering the comprehensive work plan. An applicant will receive a recommendation to establish an organized entity to run the securities market if they receive the most points in the order of merit.
| Condition | Merits Point Given |
| Detailed Business Plan provided by the applicant | 60 |
| Minimum Proposed Repayment as prescribed in the Regulations | 4 |
| Every increase above the minimum paid- up capital prescribed in the regulations, i.e Maximum four points at the rate of 1 additional point for Rs.50 crore |
4 |
| For the minimum educational qualification and experience of two- thirds of the directors as specified in the regulations | 5 |
| Additional three points if all the directors have the minimum educational qualifications and experience as specified in the regulations | 3 |
| Proposed trading system and technology for the operation of at least three securities markets of countries other than Nepal. | 14 |
| Additional five points if four to seven securities markets of the country are used for operation. | 5 |
| If the proposed business system and technology is used for the operation of move than seven securitites market of the countries, other than Nepal, additional five points added. | 5 |
| Total | 100 |
