SEBON forwards restructuring plan of Nepse

KATHMANDU, DECEMBER 24: The Securities Board of Nepal (SEBON) has forwarded a plan to restructure the Nepal Stock Exchange (Nepse) to the Ministry of Finance. As per the plan, certain measures will be adopted. They are increasing the paid-up capital of the Nepse to Rs 3 billion, allotting up to 5 percent stake to banks and financial institutions (BFIs) along with companies related to telecom, insurance, etc.; and selling 15 percent share to a foreign strategic partner, among others.

The draft of the plan had been prepared some 8 months back, but it was stuck at the NEPSE. However, following the appointment of Shova Kant Poudel as president of the Nepse on December 12,  it was sent to the ministry.

The concerned authorities seem inclined to distribute licenses to new stock exchanges to fulfil the hidden motives of middlemen. In this context, it is unclear whether the plan will be endorsed by the government.