Sebon officials told Republica that the mater plan is being formulated by international capital market experts of the World Bank. The master plan is expected to be completed by October 24. [break]
Talking to Republica, Niraj Giri, director of Sebon, said the master plan envisages providing autonomy to Sebon -- the capital market regulator, developing infrastructure, segregating public companies to be listed in the stock market and addressing regulatory regime to ensure end of contradiction on existing legal provisions, among others.
“If implemented sincerely, we expect that the master plan will provide greater autonomy to Sebon. It will also pave the way for development of adequate infrastructure for the modernization of the capital market,” Giri added.
As different acts governing the listed companies contradict with the Securities Act, the upcoming master plan will address problems that might emerge while implementing necessary regulations in the capital market.
The World Bank a few months ago agreed to provide Sebon a financial support of $152,500 to prepare the master plan that is expected to lift the capital market to the SAARC standard.
The experts team has already submitted Capital Market Assessment Report to Sebon. The government has formed a directive committee with representation from the Ministry of Finance, Law and Justice, Nepal Rastra Bank, Federation of Nepalese Chambers of Commerce and Industry and Institute of Chartered Accountants of Nepal, among others to finalize the report.
“The master plan will be finalized after incorporating inputs made by the committee,” the official stated.
The government had earlier attempted to modernize the capital market through Corporate and Financial Governance (CFG) project with the financial assistance of Asian Development Bank. However, the objectives of the project could not be fully materialized in the absence of proper implementation.
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