Kathmandu. All the three companies that had applied for the license of the new stock exchange have been found ineligible. It would be appropriate to allow more than one organized organization to operate the securities market. The study report 2081 has disqualified all the three companies that have applied for the new stock license.
A study committee led by Nepal Rastra Bank (NRB) director Chintamani Shiwakoti and comprising Season Guragain and Sujan Kumar Acharya submitted its report to the government on April 12, 2018.
The committee, which recommended the need for a new stock exchange license, has submitted a report declaring all the companies that have applied now ineligible.
The Shivakoti Committee report, which was released on Tuesday, has recommended that only organized organizations should be allowed to invest in the new stock exchange. That is, the Report of the Shiwakoti Committee has recommended that private companies should be barred from investing in the new stock exchange.
The report titled Share Ownership reads, “In view of the provisions of Rule 12 Sub-Rule 4 of the Securities Market Operation Regulations 2064, in other countries of the world, institutional good governance should be maintained in other countries of the world and priority should be given to the organization that has brought the organized organization and developed securities market as a strategic partner. । ’
Section 2(p) of the Securities Act 2063 defines an organized organization. Section 2(p) of the Securities Act 2063 states that an organized organization means an organized organization established in accordance with the prevailing law so that it can make public issue of securities. However, the term will not refer to a private company or cooperative society. ’
Based on this provision of the Act and the recommendations of the Shiwakoti Committee, no company that has applied at present can be given a license of a new stock exchange. At present, Himalayan Stock Exchange, National Stock Exchange and Annapurna Stock Exchange have applied for the license of the new stock exchange. Most of the investors of these three applicant companies are private limited companies.
According to the report, now the old process of licensing the new stock exchange will have to be canceled and a new application will have to be opened and only public limited companies will have to submit a new proposal so that they are investors.
However, the study committee has recommended that NEPSE should also be restructured before that.
प्रतिक्रिया दिनुहोस्