SEBON has implemented supervision guideline, 2074 from today; Stock brokers & Merchant bankers would be more regulated

Securities Board of Nepal has lately been active on the development work of securities markets hence the board made it a priority for all parties to implement and use ASBA system for the market. Likewise, the Merchant Banker rules and regulation of 2074 has already jumped started the initial work to systemize the securities market and to increase the capacity of broker firm as in all. The Board has summed that with new systemization for the development and reform of regulation, there are issues and challenges with that to make the market efficient.   SEBON has register itself as the member of the International Organization of Securities Commission (IOSCO) which is the international body that brings together the world's securities regulators and is recognized as the global standard setter for the securities sector. The Board, ever since being the member of IOSCO has been on pursuits to develop, implement, and promote the growing securities market of Nepal with adherence to internationally recognized standards for securities regulation. As per the press release sent by the SEBON, the board has issued new act and directives as of Bhadra 4^th, 2074 for merchant banker as well as the brokers. The spokesperson from Sebon believes that with this new implementation, it is likely that there will be an improvement in the market as well on the services provided to the entire stakeholder.   The key benefits from this new directive are as follow:-

• The Board will administrate broker management directly and indirectly.
• The Board will also specify supervision work agenda for the broker.
• The Board will put more stress on supervision of risk.
• The Board will observe broker in a timely manner.
• The Board will keep track and reports on broker accounts, rule and regulation, issuance of securities, client identification, risk management, money laundering and terrorist act through the market and so on.
• The Board will define work, duties, rights, and responsibilities of the supervisor and will mandate the moral code of conduct also.