SEBON studying private investment companies

Securities Board of Nepal (SEBON) has started preliminary study of private investment companies. SEBON will base its study and investigation of these investment companies by obtaining information through brokers. In the preliminary study, it has been learned that there are more than 1,000 private investment companies, however, not all were primarily established to invest in the capital market. Only 300 out of these companies were established for stock trading. It was also found that one person has been acting as managing director of 20 of these companies. In this state of limited institutional investors and stock brokers, effective management of investment companies is a necessity. In light of this study, SEBON aims to bring the companies within the respective regulations, which will further help develop the capital market.