July 20, 2020 | Investopaper
Securities Board of Nepal (SEBON) has issued the policy and program for the fiscal year 2077/78.
SEBON is planning to make a provision to clear the securities trading in the secondary market within two days. At current, there is T+3 transaction clearance system. SEBON will reduce the existing T+3 transaction clearance into T+2.
In the policy and program of the current fiscal year, the board has made arrangements to shorten the process as the secondary market is becoming fully technology friendly.
The Board has also prioritized the plan to link the trading system of Nepal Stock Exchange (NEPSE) with investors’ bank accounts and demat accounts, to make Nepse’s TMS effective, and to prepare and implement a periodical strategic plan for the market.
In this year’s program, the board has also brought a plan to standardize the securities central depository service, complete dematerialization of listed government bonds and make arrangements for trading in the secondary market.
In order to keep the secondary market in balance, the work of giving permission to stock dealers will also be done within this Fiscal Year. The board plans to allow specialized investment fund operations, a separate SME platform for small and medium-sized companies and a main board for other companies.
The Board also plans to conduct a study for clear policy arrangements regarding the companies and shareholders after the end of the project operation period of the hydropower companies listed in the stock market. At present, the transfer of all ownership to the government after the expiry of the license of the hydropower company seems to have reduced the attraction of investors in the sector. The general investors have been demanding to make clear arrangements in this regard.
The board has also given priority to the program of arranging an official representative of the securities broker. With the government paving the way for the issuance of broker licenses to the bank’s subsidiaries, the provision of official representatives of brokers has made it possible to enter the stock market through broker agents from across the country.
The plan since the last year to allow the establishment of a company to operate the commodities market and allow the traders has been re-prioritied.