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SEBON to Encourage Companies to Enter Capital Market

  1 min 32 sec to read

July 13: Securities Board of Nepal (SEBON) has said it will encourage production-based companies to enter the capital market. SEBON decided to give priority to this issue after the government included this sector in its Policy and Program as well as in the budget for the fiscal year 2017/18.

SEBON made such announcement during a program organized to review the current FY 2016/17 and to chart a plan for the upcoming FY 2017/18.

During the program, discussions were held regarding the policy level and institutional development of the capital market among the concerned stakeholders.  Speakers opined that the board should take special initiative to make the stock market more transparent and fully autonomous.

SEBON said that it is quite challenging to implement all the issues related to the capital market that have been incorporated in the budget.

SEBON Executive Director Paristha Poudyal said that although the Securities Registration and Issue Regulations 2073 has provisions for incentives, the reality is something different. He said that it is quite challenging for any company to enter the capital market. Paudyal further informed that board has found it equally challenging to make the secondary stock market more competitive and expand it across the country due to lack of effective regulation and supervision.

He also said that SEBON is running financial literacy programs among Non-Residential Nepalis to increase their investment in Nepal.

SEBON has made the use of Demat account mandatory for subscribers to apply for Initial Public Offering (IPO) issuances since July 16 in the Kathmandu valley and across the country from January 15 next year.

According to SEBON, more than 1,400 public companies have been registered with the Company Registration Office till date. But 1,255 companies have not issued their shares to the public.

 

 

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