The Decision of SEBON to Halt the License Application Process for Stock Broker, Stock Exchange & Commodity Market has Upset all Investors

The Securities Board of Nepal (SEBON) has suspended the process of awarding further stock broker licenses, new stock exchanges, and commodities market in accordance with a directive from the Supreme Court. According to the Board, due to the short-term interim decision given by the Supreme Court on Kartik 4, it has agreed to maintain the status quo until further action is taken, including accepting applications in accordance with the announcement the Board published on Ashwin 2.

Since the last two to three years, news have circulated that stock licenses will be granted to qualified applicants. However, just when investors believed their concerns were being addressed by the government, a new issue has emerged. The last stock broker license that SEBON issued was in 2009, which was twelve years ago. There are currently 50 stock brokers in the nation.

Investors are banding together to protest the situation. They intend to create a protest plan in which they argue that the process shouldn't be stopped at any cost.

The postponed license application procedure was discussed during a meeting of the Nepal Investor Forum on Tuesday. All groups are to protest together in the next days, the Nepal Investor Forum has resolved at its meeting.

According to them, “The Nepal Investor Forum is among the organizations that require a new broker license. For a very long period, we have been urging that the bank obtain a broker license. Before the election code of conduct went into effect, SEBON requested a new license in accordance with the request. But regrettably, attorney Deepak Bikram Mishra filed a writ contesting how licenses were given, and as a result, the Supreme Court ordered SEBON to halt the license operations until further notice, which has upset all of the investors.”

In the writ petition filed by Mishra, the court issued a short-term interim order to be applied until the next hearing. The Supreme Court has summoned both sides for the next hearing on Kartik 22, 2079.

The president of the Nepal Capital Market Investors Association, Radha Pokharel, also expressed her sadness at the board's decision through social media.

According to her, “The decision of SEBON has disappointed all of us investors. 5.4 million investors have been further disappointed when this work has been postponed at a time when the state and regulatory bodies are not being responsible. I myself was a member of the committee formed under the coordination of the Deputy Governor of Rastra Bank, Mr. Shivraj Shrestha, to assess the trends seen in the money and capital market in 2075 by the Government of Nepal. After identifying the problems seen in the management of financial resources for financial stability and investment, a broker suggestion was submitted to the bank with 58 points on the market problems. Banks were classified as brokers in the short-term, medium-term, and long-term. We are confident that the honorable court will solve these arrangements by looking at the reality and applying ointment to the wounds of the investors.”