SEBON Unveils Securities and Commodities Exchange Market Policy and Programs for the Fiscal Year 2077/ 78

The policy and program for the Securities and Commodities Exchange Market for the fiscal year 2077/ 78 has been made public by the Securities Board of Nepal (SEBON).

In a webinar hosted via Zoom, Bhisma Raj Dhungana, the chairman of the regulatory body SEBON addressed all the concerned parties and unveiled the policies and programs.

Particularly, the policies and programs were divided into four categories, namely:

1) Focus on Market Development
2) Focus on Regulatory Structuring
3) Institutional Regulation
4) Research and Investor Literacy

The programs with a focus on market development will work to bring efficiency in the securities and commodity exchange market. Dhungana talked about introducing bonds to be traded in the market to increase the products available. He mentioned that the necessary procedures were already put forward.

Similarly, he mentioned about giving the proposed stock dealer the permission to improve market movement and liquidity. SEBON will also work to create a centralized KYC management system with the coordination of CDS Clearing Limited.

Moreover, SEBON is also looking forward to creating an "SME platform" for the trading of securities of small businesses and industries.

In the same way, the programs with a focus on regulatory structuring include creating well-defined and scrutinized policies for the trading of bonds. Also, better regulations will be implemented to further keep insider trading in check. SEBON is also making the necessary preparation to facilitate merger and acquisition of companies trading in NEPSE and also to encourage NRN and foreign investment in NEPSE.

Meanwhile, the institutional regulation section of its policy and programs includes the possibility of SEBON coordinating with international agencies to better improve the trading system, among others.

On the other hand, in the research and investor training section, SEBON is looking forward to studying the feasibility of short selling in the Nepalese stock market and establishing an index fund for passive investors. Also, it has acknowledged the fact that the algorithm to determine the NEPSE index should be made contemporary and up-to-date.

Furthermore, SEBON claims it has been conducting online investor awareness programs and is expecting to conduct such programs in the future.

The descriptive booklet is attached below.