Finance Committee Urges Cabinet to Open Stock Exchange License in Written Appeal After the Last Postponement

The Finance Committee of the Federal Parliament in Nepal has taken proactive steps to advocate for the opening of licenses for a new stock exchange. Despite facing opposition from some parliamentarians, the committee, which directed the Securities Board of Nepal to resume the licensing process on the 25th of Kartik, has communicated this decision to the government through the Ministry of Finance.

Chairman Santosh Chalise stated that the committee, after a four-month hiatus in the licensing process due to disputes, disclosed its decision on Kartik 25 with the backing of all parties. Chalise emphasized that the ball is now in the government's court—to either open the license or not.

The push for a new stock exchange is grounded in the belief that introducing new stocks will enhance competitiveness in the securities market. Despite unanimous support from various parties, MP Swarnim Wagle of the Independent Party dissented from the decision. Chalise mentioned that the board will proceed with license distribution after completing the legal process, with the understanding that the finance committee may intervene again if necessary.

Simultaneously, there is pressure from the Finance Committee, while Securities Board Chairman Ramesh Kumar Hamal is urging an expedited process. This comes after Prime Minister Pushpa Kamal Dahal previously ordered a postponement in response to controversies over licenses and financial manipulation.

Last week, the Finance Committee reversed its earlier decision, instructing the government to open the stock exchange license without further study, leading to differing opinions among MPs. Swarnim Wagle expressed support for competition but criticized the timing, registering a note of dissent.

Former officials, including Yuvraj Khatiwada, Rewat Bahadur Karki, and Gopal Bhatta, allege that the Board and government are favoring certain groups in the license distribution process. They emphasize the importance of transparency in the market's interest, asserting that opaque decision-making to benefit specific groups is unacceptable.