Kathmandu. The capital market reform report has also suggested the subsidiary companies of insurance companies to work as securities traders.
The interim government had formed a 4-member task force under the coordination of Acting Executive Director of Securities Board of Nepal (SEBON) Rupesh KC to give suggestions for capital market reform. The task force led by Dr KC has submitted its report to the Ministry of Finance within 5 working days.
The task force has also recommended amending the Securities Dealer (Securities Broker and Securities Dealer) Regulations to allow the subsidiary companies of insurance companies to work as securities traders. The task force believes that if this is done, the number of institutional investors in the secondary market of securities will increase.
According to the report, the task force has the Ministry of Finance and the Securities Board of Nepal as the responsible body for amending the regulations. The task force has concluded that there is no potential risk of allowing the subsidiaries of insurance companies to work as securities traders.
The task force has set a deadline of one year for the amendment of the regulations.
