SEBON directs NEPSE and CDSC to make changes in regulations; Directions include broker license to bank as well as change in system of circuit breaker

Thu, Jan 3, 2019 1:09 PM on Latest, Stock Market,

Securities Board of Nepal has directed Nepal Stock Exchange as well as CDS and Clearing Limited to implement the changes suggested by the committee created for suggestions to develop Money market and Capital Market. For implementing the suggestions, the regulatory bodies will have to make changes in their regulations as well as their directives.

The directions for NEPSE includes:

  1. To provide broker license to the commercial banks and to enable them to create a subsidiary company for the purpose
  2. To change the system of circuit breaker to match the international practices.
  3. Creation of Investors Protection Fund for the protection of rights of the investors
  4. To develop necessary technological requirements for making the OTC market operational
  5. To provide approval to Employees Provident Fund, Citizen Investment Trust, Social Security Fund and stock traders to work as Market Maker or Dealer

The directions for CDS and Clearing Limited include:

  1. Creation of Settlement Guarantee Fund for ensuring the necessary payments
  2. After the full implementation of online trading, to decrease the clearance period to T+1 day from previous T+3 days

SEBON has shown its active participation in the improvement of the stock market. The implementation of mentioned suggestions will ensure stability and development of the market.

Your browser does not support pdfs, click here to download the file.