Kathmandu. A committee formed under the coordination of former Deputy Governor of Nepal Rastra Bank and member of the Board of Directors Chintamani Shiwakoti has pointed out the need for a new stock exchange.
In the study report conducted by Shiwakoti’s committee on whether it would be appropriate to allow more than one organized organization to operate the stock exchange, the new stock exchange is necessary. The report has been made public by the Securities Board of Nepal today. According to the report, a new stock exchange is necessary in Nepal as an institution owned by the regulatory agency on the basis of the basic principles of balance of power and regulation cannot be effectively regulated due to vested interests while operating the market.
The report also said that the idea of restructuring the existing Nepal Stock Exchange (NAPS) cannot be said to be bad. “However, if we thought of restructuring NEPSE, we could not be sure that the restructuring plan would be fruitful for the next 15 years,” the report said. ’
On the other hand, the legal practice in the existing acts, rules, bye-laws, bye-laws, directives, etc. does not seem to hinder the grant of permission for the new stock exchange. “The complaints received in the Federal Parliament and the House of Representatives Finance Management Committee regarding the operation of the new securities market and the views of the honorable lawmakers have been addressed through the decision of the Finance Committee,” the report said. ’
The report has recommended that it would be appropriate to allow one more stock exchange to operate with the investment of the private sector in accordance with the provisions contained in the existing Securities Act, 2063 and the regulations and guidelines framed under this Act. The committee has also recommended setting conditions so that the necessary criteria should be met while entering additional stock exchanges.
The report has also suggested restructuring of NEPSE to be able to survive in a competitive environment as the entry of new stock exchanges will lead to competition.
The report also suggested enhancing the capacity of the Securities Board to effectively regulate the post-entry scenario of the new stock exchange.
siwakoti partibedan
