SEBON introduces new Securities Listing and Trading Bylaws 2075; share trading expected to begin within days of allotment

Securities Board of Nepal is all-set to implement the Securities Listing and Trading bylaws 2075 from Shrawan 1, 2075. Following the implementation of the latest bylaws, the securities market of the nation is expected to witness many timely reforms, few of which are as below

1. Now, the companies need to apply with the stock exchange to list their shares within 7 days of receiving offer letter while issuing shares to general public which will enable these shares to be listed as soon as they are allotted making their transaction quicker and easier
2. The rational mechanism to divide the listed companies to four catogories i.e. A, B, G and Z will soon be in place which will completely replace the present system of dividing them in just two categories i.e. A and B. this shall lead to more scientific categorization of the companies permitting the investors to make more rational decisions about these companies while transaction decision making process.
3. The stock exchange i.e. NEPSE has now been mandated to shift to Automated Electronic Trading System in order to do away with the traditional means of transaction. The stock exchange is also required to conduct system audit of the soon-to-be introduced technology in every two years.
4. The securities market has also been provided with an authority to incorporate necessary reforms in the way circuit breakers are clamped during unusually upward and downward movement of the market
5. The stock market will have to make provision of Settlement Fund and those transactions which fail to settle within stipulated time have to be support from that fund. It has a provision for this settlement fund to receive the settled amount later with the seller along with certain percentage of interest.
6. The board has also set out more strict and straightforward guidelines to make the stock brokers more responsible entities and to take punitive measures against them in case of any misadventures.