May 10: Securities Board of Nepal (SEBON) is preparing to allow non-resident Nepalis (NRN) to enter the secondary market of securities. The board aims to finalize the legal arrangement within three months on this matter.

SEBON Chairman Ramesh Kumar Hamal said that efforts have been initiated to contribute more to the creation and mobilization of national capital by including NRNs in the secondary market. He informed that the board formed a committee to make legal arrangements for this.

According to Hamal, a committee has been formed under the coordination of SEBON Director Sujan Kumar Kafle as per the decision of the board meeting held on April 2. Kafle became the board’s director representing Nepal Chartered Accountants.

Other members of the committee include expert member of the board Bholanath Dhungana and executive director Muktinath Shrestha. The responsibility of Member Secretary has been given to Deepa Dahal, deputy executive director of SEBON.

Chairman Hamal said that the committee will formulate the necessary regulations for the entry of NRNs into Nepal's capital market within the next three months and submit it to the Board of Directors.

In addition, the committee will identify the difficulties that may arise in the implementation of the regulation and recommend solutions. The board believes that the number of investors will increase and the liquidity will also ease in the securities market after the implementation of the regulations to introduce NRNs into the capital market.

SEBON expects that the entry of NRNs will strengthen the demand side of the secondary market, reduce market volatility and reduce price risk. The new regulations will also allow Nepalese people living abroad to easily transact in the securities market of Nepal, which has become completely technology-friendly.

Investors believe that the entry of NRNs into the secondary market will lead to an increase in investment in the stock market and help revitalize the weak state of weak economy of the country.

Former Chairman of Nepal Investors Forum Chhote Lal Rauniyar said that if NRNs can be brought into Nepal's capital market, it will be a milestone for the market.

Rauniyar emphasized that regulations should be made to give special priority to the securities market and encourage them to invest in various sectors.