Kathmandu. The issue of licensing the new stock exchange is now very much discussed. There have also been debates on whether or not a new stock exchange is needed in Nepal. While many are saying that it is not necessary, the Securities Board of Nepal is preparing to give a license to the new stock exchange.
The study committee led by Chintamani Shiwakoti had submitted a report to the government keeping open both the options of restructuring the existing Nepal Stock Exchange and operating it technologically and licensing the new stock exchange. The government had directed the securities board to implement the report.
Following the government’s directive, a task force was formed within the Securities Board to study Shiwakoti’s report and prepare an action plan. The task force has already submitted the action plan to the Securities Board a month ago. However, the action plan could not be presented in the meeting of the Securities Board of Directors.
A meeting of the Board of Directors of the Securities Board was held on Thursday evening. Although the action plan report was presented in the meeting, it could not be discussed, according to sources in the Securities Board. “The directors did not see the report, there was a difference of opinion between them,” the source said, adding that some directors expressed their opinion that it would be appropriate to restructure the Nepal Stock Exchange (NEPSE). Some of the directors pointed out the need for another stock exchange as there was no possibility of developing the capital market only by restructuring NEPSE. ’
The meeting concluded by submitting a copy of the action plan report to all the directors. “After studying the report, it has been said that the next meeting of the board of directors will be discussed again,” the source said.
Securities Board spokesperson Niranjay Ghimire said the action plan report would be discussed in the next meeting of the board of directors. “The same meeting will decide how to move forward,” he said.
Chairman Shrestha is in favor of licensing the new stock exchange. He has repeatedly said that he will move ahead accordingly as the government has decided to bring a new stock exchange.
The Securities Board had invited applications for a new stock exchange license in September 2019. However, the Supreme Court’s short-term interim order came on a writ petition that had to be stopped when the deadline for applying was coming to an end. On November 12 of the same year, the Securities Board had postponed the application for the license of the stock exchange and commodity exchange.
Later, after the Supreme Court dismissed the writ petition, the Securities Board opened the application on March 20, 2019 by keeping the remaining 10 days deadline. Annapurna Stock Exchange, Himalayan Stock Exchange and National Stock Exchange of Nepal had applied for the license of the new stock exchange at that time.
