Key Points of Nepal Securities Board's New Policy and Program
Author
NEPSE trading
The Nepal Securities Board has announced its policy and program for the fiscal year 2081/82, which includes several reforms and new arrangements aimed at strengthening and organizing Nepal's securities market.
Modification of the Lock-In Period for Listed Companies
The Securities Board plans to revise the current "lock-in" period for founder shares of listed companies. This adjustment aims to increase flexibility in trading founder shares and boost investor confidence.
"The current lock-in period for founder shares of listed organized institutions will be studied and revised," stated the board in its policy and program released on Monday. This change is expected to facilitate new founder shareholders' share trading.
Management of Rights Shares and Founder Shares Auction
The board will implement an automated auction system to manage the auction sale of rights shares and founder shares. This system aims to enhance transparency and clarity in the share auction process.
“To implement an automated auction system for the sale of rights shares and founder shares,” the policy and program mention. The automated auction system is expected to make the share sale process quicker and more efficient.
Entry of Non-Resident Nepalis into the Secondary Market
The Securities Board has prioritized allowing non-resident Nepalis to enter the secondary market. Although this topic has been included in policies for a long time, it has not been fully realized yet.
“To advance the amendment process in securities laws to open investment for non-resident Nepalis in the secondary market,” the policy and program state. This change is expected to attract foreign investors and make Nepal’s capital market internationally competitive.
Other Major Policies and Programs
The Nepal Securities Board has also introduced other significant policies and programs for this fiscal year to aid in capital market improvement and strengthening.
Training for Experts to Improve the Capital Market: The board plans to provide training for experts, preparing knowledgeable professionals to offer necessary recommendations for market improvements.
Promotion and Development of Securities and Financial Instruments: The board aims to promote and develop securities and financial instruments, which will help attract new investors.
Service Improvement through Information Technology: The board plans to improve services by utilizing information technology, making service delivery faster and more efficient.
Strengthening the Market Monitoring System: The Securities Board is focusing on strengthening the market monitoring system to eliminate various irregularities and opacities in the market.
Workshops and Training Programs: The board will conduct workshops and training programs for experts, preparing knowledgeable professionals for the market.
Participation in International Conferences and Seminars: The board plans to participate in international conferences and seminars, enabling Nepal's financial institutions to compete on an international level.
Development of New Technologies for Maximum Use of Technology: The Securities Board aims to develop new technologies to maximize the use of information technology in the market, aiding in service improvement.
