Paid-Up Capital of the New Stock Exchange That Is To Be Established Should be Rs. 3 Arba

Apart from Nepal Stock Exchange Limited (NEPSE), the paid-up capital of the new stock exchange that is now being constituted should be Rs. 3 Arba. This clause was added by the Securities Market Operating Regulations 2079, which was published by the Securities Board of Nepal (SEBON).

The board has increased the existing paid-up capital provision to Rs 3 Arba. The stock exchange's paid-up capital was merely Rs 5 crore earlier.

The Securities Board is prepared to invite applications for new stock exchange licenses in a few days in accordance with the rules. Similar to this, the stock exchange that is created in accordance with the regulations must issue 30% of its shares to the general public within the first two years of operation.

Likewise, there is also a provision for companies who run securities markets in other nations outside Nepal to invest in the stock exchange. These companies will be permitted to invest in the Nepali Stock Exchange as long as they have operated in the securities market for the last ten years and have been given permission to do so.

As founding investors in the exchange, only private and organized companies created in accordance with Nepali legislation would be permitted. However, it is prohibited to own more than 15% the shares by the directors of any one company or group of connected companies through the exchange.

No employee of a company, or a director or shareholder of such an organization or a company whose close family the employee is, will be permitted to hold more than 5% of the total share capital of the securities market.