January 25: The government has formed a three-member committee to study the need for a new stock exchange body in the country.

A meeting of the Council of Ministers on Tuesday decided to form the committee headed by former Deputy Governor of Nepal Rastra Bank Chintamani Shiwakoti to study the issue that has courted controversy.

Other members of the committee include Chartered Accountant Sujan Kumar Acharya and Advocate Sijan Guragain.

According to the Ministry of Finance, the committee has been mandated to submit within 45 days a report on whether the country requires a new stock exchange or not.

The Securities Board of Nepal (SEBON) had initiated the process of setting up a new stock exchange entity in September 2023. Currently, the country has only one body to oversee the securities market trading which is done by the state-owned Nepal Stock Exchange (NEPSE). After the regulatory body SEBON had completed all the due process to establish a new stock exchange entity to diversify the secondary market transaction, the government halted the process.

A cabinet meeting in during last May instructed SEBON to halt the process of licensing the new security exchange.

Subsequently, the Finance Committee of the House of Representatives had also instructed the SEBON to put on hold the process of issuing license for a new stock exchange. However, after studying all the documents related to the process of licensing a new stock exchange, the house panel after five months gave the go ahead with the licensing process arguing that the Supreme Court has already issued a verdict in favour of SEBON.

Himalayan Stock Exchange, National Stock Exchange of Nepal and Annapurna Stock Exchange Limited have so far submitted applications to the SEBON seeking license to operate the new stock exchange entity.