KATHMANDU, Sept 18: The Securities Board of Nepal (Sebon), after going through a dilly-dally for a long time period, has decided to issue licenses to a new stock exchange, commodities exchanges and brokerage firms.
In this regard, Sebon issued a public notice on Sunday, inviting applications from the interested firms. The regulatory body has recently got the related bylaws endorsed from the government that allow it to issue new licenses to these entities.
As of now, only Nepal Stock Exchange (Nepse) has been working as the frontline regulator of securities trading in the country. Citing an expanding volume of stock trading recently, stakeholders have been demanding the government authorities issue the license to a new market player.
A decade ago, four firms registered applications at Sebon, seeking its permission for starting new stock exchanges. In the new development, other interested groups can also apply within a deadline of 45 days, according to Sebon.
Likewise, Sebon has opened licenses for two commodities exchange firms. Six firms have already filed their applications at Sebon to receive the license for commodities exchanges. As of now, there is no such legitimate body to look after the commodities exchange in the country.
Similarly, the regulator has also stepped up measures to issue licenses to new stockbrokers. Currently, a total of 50 brokerage firms have been working in the segment. Sebon has set a deadline of 30 days to apply for the license of a brokerage firm.