Cabinet Decision to Advance the Licensing Process for a New Stock Exchange

The Cabinet meeting has decided to move forward with the process of issuing a license for a new stock exchange. This decision was based on recommendations made by a committee led by Chintamani Shivakoti, a member of the Nepal Rastra Bank Board of Directors, a minister confirmed.

The previous government had formed the Shivakoti-led committee on Magh 9, 2079, to study the necessity of a new stock exchange and submit a report. The committee submitted its report on Baisakh 13, 2081, recommending two options: restructuring the Nepal Stock Exchange (NEPSE) to make it more modern and efficient or granting a license for a new stock exchange.

The report suggested that introducing a new stock exchange would enhance competition and modernize the share market with advanced technologies. It also recommended restructuring NEPSE by involving foreign strategic partners, maintaining partial government ownership, and encouraging private sector investment.

The Securities Board of Nepal (SEBON) had opened applications for stock exchanges on Ashoj 2, 2079, but the process was halted due to an interim order from the Supreme Court. After the court order was dismissed, SEBON reopened the application process on Chaitra 30, 2079, granting an additional 10 days for submissions. Applications were received from Himalayan Stock Exchange, National Stock Exchange of Nepal, and Annapurna Stock Exchange Limited.

The Cabinet had instructed SEBON to suspend the licensing process on Baisakh 26, 2080, and the Parliamentary Finance Committee also directed SEBON and the Ministry of Finance on Jestha 29, 2079, to halt the process until a detailed study was completed.

Although the Shivakoti-led committee submitted its report on Baisakh 13, 2081, recommending that a license for a new stock exchange could be granted, no decision had been made. With the appointment of a new SEBON chairman, it is now expected that the process will move forward.