Sebon officials said the study report would be submitted in the upcoming board meeting of the stock market regulator. If Sebon decides to establish a new stock exchange, it will end monopoly enjoyed by the state-owned Nepal Stock Exchange (Nepse).[break]
“We are forwarding the study report to the Sebon board for necessary action,” said Navaraj Adhikari, director of Sebon.
The report prepared by a team led by Sebon director Paristha Poudel states the necessity to establish a new stock exchange was felt as Nepse has failed to modernize its service despite repeated instruction from the stock market regulator.
“We are mulling over adding a new stock exchange to bring more competition in securities trading,” said Babu Ram Shrestha, chairman of Sebon. He also said Nepse had failed to introduce online trading system despite repeated instruction from Sebon to introduce Internet-based system by mid-July.
Another study conducted a couple of years ago had also suggested Sebon to initiate the process for establishing a new bourse.
National Stock Exchange and Kathmandu Stock Exchange had applied at Sebon a couple of years ago, expressing interest to run a stock exchange. However, both the firms agreed in principle to undergo merger after Sebon hinted that it would give license to only one stock exchange.
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