Nepal Securities Board (SEBON) has announced plans to introduce a new regulation aimed at ensuring reliable investment advice and curbing rumor-based information in the capital market.
The Nepal Securities Board (SEBON) has announced that it will draft an ‘Investment Consultation and Research Analyst Regulation’ as part of its capital market policy for the fiscal year 2083/84. Through this, the board aims to to ensure official and trustworthy investment advisory services in the capital market and to promote an investment culture based on proper research.
According to SEBON, a clear licensing system and professional code of conduct will be implemented for organizations and individuals offering investment consultation and research analysis services. Standards will also be prepared for research analysts to maintain information confidentiality, manage conflicts of interest, and be more accountable for their work.
The policy also includes provisions for necessary legal arrangements to conduct professional certification programs. This will help develop the capacity of research analysts and other related personnel working in securities businesses and merchant banks.
The board stated it will effectively monitor and take legal action against unauthorized investment advice, misleading propaganda, and market manipulation activities occurring through social media. Additionally, a ‘zero tolerance’ policy will be adopted against those who commit securities-related offenses and spread misleading information.
SEBON will also encourage research coverage for companies listed on the Small and Medium-sized Enterprise (SME) platform. The goal is to make the price discovery process more effective by ensuring market analysis and information about these companies reach investors.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
