January 24, 2021 | Investopaper
Securities Board Of Nepal (SEBON) has given permission to Nagarik Stock Dealer Company Limited to act as a securities dealer. As per the program in the current budget, the board has given permission to the Nagarik Stock Dealer Limited established with the investment of the Citizens Investment Trust to operate as a stock dealer from Falgun 1, 2077 BS.
The Board has also amended the Securities Dealers Regulations, 2064 BS to encourage the entry of institutional investors in the capital market of Nepal. SEBON has issued a license to Nagarik Stock Dealer Company, a subsidiary of Citizens Investment Fund, to operate as a securities trader to expedite the entry of institutional investors in Nepal’s capital market.
The board has stated that it believes that the entry of Nagarik stock dealers will play an important role in the development of the market.
Nagarik stock dealer company, at current, has a paid-up capital of Rs 3.5 billion. Citizen Investment Fund has a 51 percent share in the company. Likewise, Reinsurance Company and Nepal Telecom will invest 10 percent and 9 percent respectively. The stock dealer company will issue the shares worth Rs 1.5 billion to the general public.