SEBON Extends Deadline for Companies Who Wants to Apply for Stock Exchange Operation & Commodities Exchange License

Securities Board of Nepal (SEBON) has published notice to eligible institutions to submit applications for Commodities Exchange Market Operation license and Stock Exchange Operation license within 10 days.

In order to give investors access to the market, support commodity price innovation, and give investors alternative investment tools to maintain price stability, it is necessary to operate a commodities exchange market that is investor-friendly, competitive, international in scope, and capable.

Those who intend to establish a limited liability organization in accordance with the prevailing legislation must get board approval before doing so in order to operate the commodities exchange market under the rules, guidelines, and other applicable laws.

The Securities Market Operation Regulations 2064 and the Securities Dealers Regulations 2064 revised by SEBON begin the process of awarding new licenses. The Securities Board released a notice on Ashwin 2, 2079 with a 30-day deadline in order to carry it out. However, the Supreme Court issued a brief interim ruling on Kartik 4 to maintain the current process while it heard a petition challenging the new license distribution procedure of the Stock Exchange, Commodity Exchange, and Stock Broker. 

Now the writ has been canceled by the order of Supreme court and SEBON is yet again moving further with the procedure of granting licenses to the companies applying for the Commodities Exchange Market Operation license and Stock Exchange Operation license.

SEBON has published this notice for the information of any parties involved who would be interested in submitting an application under the following circumstances;

• Applications must be submitted within 10 days of the date this notice was published by interested organizations that are qualified to operate the commodity exchange market in accordance with the Commodity Exchange Act, 2074 and the rules, regulations, and other applicable laws under the Commodity Exchange Market Act, Regulations and Guidelines.

• Based on the applicant's application, the board will evaluate the candidate. Two Commodities Exchange Market applicants will be chosen on the basis of merit and given advance approval for the company to run the barter market in compliance with the applicable law. Likewise, one applicant will be chosen for the Stock Exchange Operation.

• The Board shall have sole discretion to accept or reject any and all applications received in accordance with the notice.