September 5: The Securities Board of Nepal (SEBON) has amended the Stock Exchange Operation Regulation, 2064 for establishing a new stock exchange company.

SEBON’s spokesperson Rupesh K.C said that the meeting of board’s management committee has revised the regulation and sent it to the Ministry of Finance for approval. He said that the Ministry of Finance will submit the revised regulation to the Council of Ministers for approval, and after the Council of Ministers passes it, SEBON will implement it.

KC informed that amendments have been made for new arrangement of paid-up capital, investment and share acquisition. The regulations have been amended by proposing a minimum paid-up capital of Rs 3 billion for the new stock exchange. At present, there is a provision that the paid-up capital should be Rs 50 million. Similarly, the amended regulation also has provision for other institutional investors to invest in the new stock exchange company. Arrangements have been made for any eligible institutional investors, public or private entity to invest in the new company.

At present, only banks, financial institutions, securities traders and listed organizations can invest in stock exchange shares. In the revised regulations, the limit on investment in the new stock exchange has also been increased.

At present, there is a provision that no single company or organization can take more than 10 per cent of the paid-up capital of the stock exchange. It has been increased to 15 per cent. According to sources at the Securities Board, the new stock exchange license will be given after completing the process before the Dashain festival.

Investors have also been demanding a new stock exchange company for a long time. Neighbouring India has two stock exchange companies -- BSE and NSE – in operation.