September 7: Members of Parliament on Tuesday drew the government’s attention to contemporary political and national issues. During the House of Representatives meeting on Tuesday, UML MP Krishna Prasad Dahal raised the issue of a new stock exchange company. Speaking at the zero hour of the meeting, he said that another stock exchange company was not necessary. He opined that Nepal Stock Exchange, which is currently in operation, should be made capable and strong, rather than introducing new stock exchange companies.

He stressed on modernizing the Nepal Stock Exchange (NEPSE) in order to make  it effective and strong. He said that Nepal's capital market is not in a position to support a new stock exchange company.

Dahal also said that the government is about to issue license to a new stock exchange company in an unauthorized manner. He accused the government of taking a wrong decision saying that such a new organization was not necessary.

The Securities Board of Nepal recently amended the 'Securities Market Operation Regulations, 2064' to allow the private sector to issue stock exchange licenses. In the regulations, the board increased the paid-up capital of stock exchange companies to a minimum of Rs 3 billion. Currently, the paid up capital of the stock exchange company is Rs 50 million.

Meanwhile, NEPSE’s Manager Niranjan Phuyal insists that a new stock exchange company is necessary. He argues that the state-owned NEPSE is not able to perform well. According to Phuyal, if NEPSE faces any technical problem it will take nine months to purchase new technology as they have to go through public procurement process. Therefore, Phuyal says there is a need of another stock exchange company to make the stock market competitive.