May 12: The process of distributing new stock exchange license by the Securities Board of Nepal (SEBON) has been postponed again.

The government has decided to halt the license distribution process of the new stock exchange for the time being.

A meeting of the Council of Ministers on Tuesday decided to proceed ahead with the license distribution process only after further study as questions were raised in the parliament regarding the license of the new stock exchange.

According to the information provided by the Ministry of Finance, the Council of Ministers has instructed the concerned bodies to proceed with the process only after further study keeping in mind the interests of the investors.

As per the instructions of the Council of Ministers, the Ministry of Finance said it will write letter to SEBON regarding this issue on Friday.

Earlier, the license distribution process of the new stock exchange was postponed due to two separate cases filed at the Supreme Court. The process went ahead after the court quashed the petitions.

Three companies have applied for the license of the new stock exchange. Himalayan Stock Exchange, National Stock Exchange of Nepal and Annapurna Stock Exchange Limited have submitted applications to SEBON for the license of the new stock exchange.

A dispute had surfaced regarding one of the three companies that applied for the new stock exchange license. The dispute is related to the Himalayan Stock Exchange, which had applied for the license with the board.

Ramesh Kumar Bhattarai, chief executive officer of Mahalakshmi Life Insurance Limited, has claimed that they have already registered an application for a license in the year 2066 in the name of Himalayan Stock Exchange Limited.

The board revised the Securities Market Operation Regulations, 2064 last year for the distribution of new stock exchange licenses. According to the new provision, the organized institutions registered following the prevailing law to operate the securities market must submit an application within six months from the date of registration.

There is a provision that the paid-up capital of the new stock exchange should be at least Rs 3 billion. The company must issue 30 per cent shares of the issued capital to the general public within two years of conducting the business with the approval of the board.