KATHMANDU, June 6: A meeting of the board of directors at the Securities Board of Nepal (SEBON) failed to reach a decision on granting a license for a new stock exchange after a complaint was lodged with the Commission for the Investigation of Abuse of Authority (CIAA).
The complaint alleged that the government could suffer heavy financial losses if a license is issued to the new stock exchange. Following this, Board members including FNCCI Director General and Board Member Gokarna Awasthi, as well as members Bholanath Dhungana and Nil Bahadur Saru Magar walked out of the meeting, citing concerns over the complaint.
Govt permits SEBON to issue license to new stock exchange amid...
SEBON Chairperson Santosh Narayan Shrestha had called the meeting to make a decision on the licensing process. Despite the government's announcement to restructure the Nepal Stock Exchange (NEPSE), Shrestha is reportedly moving forward with plans to license a second stock exchange.
The complaint submitted to the CIAA claims that the Ministry of Finance, which holds a 58.66 percent stake in NEPSE, earns billions in returns annually. It warned that licensing a new stock exchange under the current circumstances could result in a loss of Rs 27.5 billion to the state.
The complaint also calls for action against SEBON officials, including the chairperson, for allegedly pushing forward a decision that could harm public finances.
