New Stock Exchange: Which Company Will Receive the License?

The path for establishing a new stock exchange has been cleared. The recent Cabinet meeting has decided to proceed with the licensing process, paving the way for the Securities Board of Nepal (SEBON) to advance the required steps to issue a license.

Nearly two years ago, in Ashoj 2079, SEBON had invited applications for a new stock exchange license. However, the process was halted after an interim order from the Supreme Court as the application deadline approached. On Kartik 4, 2079, SEBON suspended the applications following the court's order.

Later, when the Supreme Court dismissed the petition, SEBON reopened the application process on Chaitra 30, 2079, granting an additional 10 days. During this period, Annapurna Stock Exchange, Himalayan Stock Exchange, and National Stock Exchange of Nepal submitted their applications.

On Baisakh 26, 2080, the Cabinet issued another directive to suspend the licensing process. Additionally, the Parliamentary Finance Committee instructed SEBON not to proceed until a detailed study was completed. Although the committee later allowed the process to resume, the lack of change in the government’s directive stalled progress.

On Magh 9, 2080, the government formed a committee led by Chintamani Shivakoti to assess the necessity of a new stock exchange. The committee recommended two options: restructuring and modernizing the existing Nepal Stock Exchange (NEPSE) or issuing a license for a new stock exchange.

The current government has now decided to move forward based on this report. Recently appointed SEBON Chairman Santosh Narayan Shrestha has expressed his commitment to advancing the process as directed by the Cabinet. Among the three applicants, one is likely to secure the license for the new stock exchange.