Sebon celebrates its 16th anniversary

Securities Exchange Board of Nepal has completed sixteen years of its operation and has stepped to seventeenth from today. All the prevailing board of directors of the company present in the ceremony. Dr. Narayan Prasad Poudel, chairman of NEPSE urged SEBON to implement the Central Depository System (CDS) soon. After the implementation of CDS, the wings of Nepal Stock Exchange would be spread throughout the country to assist hassle free trading.

During the program, a list of companies receiving approval for the initial public offering was presented. Altogether 11 companies with total capital of 2.509 billion got the consent of the share market watch dog to float their general shares in the market. Among the 11 companies, 4 are commercial banks with total capital of 1.275 billion, 3 development banks with 355.2 million capitals, 2 hydropower companies got approval with the capital base of 845 million and finally 2 insurance companies with 39 million. 13 more companies are in a pipeline to float their general shares in the market.

Similarly, the right shares worth Rs, 10.533 million were given a positive nod to floating that incorporates 4 commercial banks, 12 development banks, 26 finance companies and 2 insurance companies. Meanwhile, bonus shares issuance worth Rs. 39.557 million were given permission by SEBON.

During the 11 months of the current fiscal year, general public have shown the ample interest in the primary issues of the companies. The IPO have oversubscribed by 23 times in the period, said, Paristha Nath Poudel, director of the Board. He further added that, the size of the market have increased by 3130 % or 32 times since 2050 B.S to now and around 1.2 million investors are existent, but still the number of brokers are minimum. Therefore, the numbers of brokers are to be added very soon according to the need of the market. At present, there are only 23 brokers in the secondary market and this figure can be extended to 50 very soon.

Three companies have submitted the proposal of commencing fully automated new Stock Exchange in Nepal, but according to the market scenario only one company can be permitted to open the Exchange, said Paristha Poudel. Kathmandu Stock Exchange Ltd, National Stock Exchange Ltd and Nepal Securities and Derivative Exchange Ltd had submitted proposals to SEBON. There are 17 companies performing the function as merchant bank in Nepal and still four companies are in process for license.

¿Stock market has faced lots of hassles from the starting period till date, but we are still doing our best effort to uplift the stock market in Nepal. We are in process to enact various laws in favor of the market and bring Central Depository System to make the market more thorough and apparent,¿ said, Soorbir Poudel, Chairman of SEBON.
Source:
Jamb News Service