Published On: October 20, 2016 08:56 AM NPT By: Republica | @RepublicaNepal
KATHMANDU, Oct 19: The Securities Board of Nepal (Sebon) has formed a committee to study possible effects of opening the secondary share market to direct investment from non-resident Nepalis (NRNs) and to draft a working procedure for such investment.
Issuing a statement on Wednesday, Sebon said Niraj Giri, an executive director at its Regulation and Management Department, is heading the committee which will have another member from Sebon, and a member each from the Ministry of Finance, Nepal Rastra Bank, Nepal Stock Exchange, and the Non-Resident Nepali Association.
The committee will draft the working procedure within two months after completing its study on the impact that NRN investment could have on the capital market and the national economy as a whole, Sebon said.
The capital market regulator’s move follows pledges made by governments in their previous budget speeches to allow NRN investment in the secondary market.
“After the working procedure is drafted and enacted, NRNs will be able to make direct investment in the share market of the country,” Rewat Bahadur Karki, the chairman of Sebon, said.
“Allowing NRNs to invest in the market has been made possible by recent efforts to modernize and fully automate the trading process,” he said, referring to the full-fledged implementation of a paper-less share trading system.
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