Kathmandu. Kathmandu: The High-Level Economic Reform Suggestion Commission formed by the government has suggested restructuring of the Nepal Stock Exchange (NEPSE).
The commission’s final report submitted to Deputy Prime Minister and Finance Minister Bishnu Poudel has made this suggestion. The report has suggested restructuring of NEPSE and increasing capital and participation of the private sector in nepse shares.
The Commission has also suggested the government to restructure the CDS and Clearing (CDSC) and make arrangements to provide safe depository service of securities with adequate manpower to other organizations besides NEPSE.
Similarly, the high-level commission has suggested removing the provision of appointing representatives of Nepal Chartered Accountants Association, Federation of Nepalese Chambers of Commerce and Industry and Joint Secretary at the Ministry of Law, Justice and Parliamentary Affairs on the board of directors of Securities Board of Nepal (SEBON). According to the report, there is a provision to have only one expert at present, but it should be changed to two.
The report has also suggested that autonomy should be provided to increase efficiency with the provision of adequate manpower in Sebon to make regulation and supervision effective with the expansion of the capital market.
Similarly, the report has suggested that non-resident Nepalis (NRNs) should be allowed to transact in the secondary market and for this, sections 9 and 10 of the Foreign Investment and Technology Transfer Act, 2075 should be amended to allow non-resident Nepalis to transact on the basis of non-resident Nepali citizenship identity card without setting up a capital investment fund.
The Commission has also suggested that only up to 50 percent of the amount brought by non-resident Nepali investors to buy shares in the secondary market should be refunded twice in a year.
