SEBON releases programs and policies for upcoming fiscal year; reflects on average growth of Nepalese stock market and proposes plans to bring further improvement

Securities Board of Nepal has released its policies and plans for the upcoming fiscal year 2076-77 amid a program. Through its list of plans and policies, the board has also recapped the performance of NEPSE during the review period where the board claims that the demand-supply side of the shares hasn’t yet been managed properly.

The board has noted that there were public issue of shares worth of Rs 35 arba by 53 different companies during the review period which is around 18% less than the earlier fiscal year.

Similarly, SEBON’s data also shows that 55% of the total public issues this fiscal year has been dominated by the issuance of debentures as more commercial banks floated debentures as their loanable fund shrunk massively during the review period. Likewise, the market saw four mutual funds issuing their shares to general public this fiscal year which is a decline of 18%.

The board recorded the NEPSE growth rate of 1.79% by the end of Jestha, 2076 in comparison to the previous year where the float index increased with 3.75% growth. Likewise, the listed companies in NEPSE has jumped up by 7.19% thus taking the total listed companies to 209 companies in NEPSE.

During the review period, the market capitalization has increased by 24.33% to Rs 15.79 kharba which stood at Rs 12.70 kharba last year.

Likewise, the market witnessed the transaction of Rs 96.99 arba this year which is a decline by 15.85%  earlier. This year, NEPSE recorded a daily average transaction of Rs 43.89 crore which is also a decline by 19.60% than the previous year.

Likewise, the board also clarifies that it has decided to allow 2 commodities markets to function in Nepal putting into consideration the size and reality of Nepalese economy and has received applications from 6 interested parties to operate commodities market in Nepal. as per its decision, the board is in a process of selecting 2 suitable parties for the same in a near future.

Similarly, the board also highlights that the stock market of Nepal is in an evolving path with number of good decisions taken during the review period that include implementation of ASBA and CASBA, reduction of share allotment and transaction time to 40 days from earlier 6 months, issuance off money laundering guidelines, bringing stock brokers and DPs under the purview of law, implementation of specialized investment fund bylaws 2076 to promote venture capital fund, private equity fund and hedge fund and so on.

In addition, the board has also conducted a range of events and brought in a number of provisions and policy guidelines to protect the interest of investors and to make the stakeholders in stock market more responsible, as per the media statement. Similarly, the board also conducted series of outreach activities during the review period including radio programs, international level conference,

On the other hand, the proposed policies and programs have envisioned several of priorities for the upcoming fiscal year. These major priorities are highlighted as below:

• to revise and adopt practical book building system for determining the share values with premium value for IPOs as per international practice
• to facilitate the establishment of second stock exchange in the nation in order to promote professional growth of securities market.
• to allow shareholders to apply more right shares than their actual right as per their total share holding.
• to further continue the drive of One Nepali One Demat account.
• to manage the information flow in stock market by tightening up the grips on bulk transactions.
• to facilitate for insurance of share holdings upto certain limit.