Supreme Court Clears Path for New Stock Exchange Licenses

The Supreme Court has dismissed a writ petition seeking to halt the issuance of new stock exchange licenses, paving the way for the establishment of additional stock exchanges in Nepal. A constitutional bench comprising Chief Justice Prakashman Singh Raut and Justices Sapana Pradhan Malla, Kumar Regmi, Hari Prasad Phuyal, and Dr. Manoj Kumar Sharma issued the verdict on Wednesday, rejecting the petition filed by advocate Krishna Bahadur Thapa and others.

The petition had argued that the Securities Board of Nepal (SEBON) had policy inconsistencies in the process of granting stock exchange licenses. Thapa had sought the court’s intervention to halt the licensing process, naming SEBON, the Ministry of Finance, and the Office of the Prime Minister and Council of Ministers as respondents. With the court’s decision, the licensing process is set to proceed without legal barriers.

Earlier, SEBON had invited applications for new stock exchange licenses, attracting three applicants: Himalayan Stock Exchange, Annapurna Stock Exchange, and National Stock Exchange. Himalayan Stock Exchange is backed by prominent Nepali business houses, while National Stock Exchange has significant investment from Non-Resident Nepalis (NRNs). Similarly, Annapurna Stock Exchange is also supported by Nepali entrepreneurs. As per regulatory provisions, any new stock exchange must have a minimum paid-up capital of Rs. 3 Arba and allocate 30% of its shares to the public.