The Nepal Securities Board (SEBON) has formed a coordination and facilitation committee to systematically implement second market reform plans, covering services like margin lending and short selling.
The Nepal Securities Board (SEBON) is moving forward with its plan to improve the secondary stock market by setting up a special committee. This committee aims to put into action the reform programs mentioned in the budget for fiscal year 2083/84 and also SEBON’s capital market policy.
This new committee is headed by the Executive Director of SEBON’s Supervision Department. It includes three representatives from SEBON itself, along with one representative each from the Nepal Stock Exchange (NEPSE), CDS and Clearing (CDSC), and the Stock Broker Association of Nepal (SBAN).
The committee’s main job is to prepare suggestions for all the necessary legal, technical, operational, and procedural arrangements. These arrangements are needed for implementing key services such as Margin Lending, Intraday Trading, Securities Lending and Borrowing, and Short Selling. On top of that, the committee also coordinate and facilitate work related to second market improvements and will collaborate with banks, financial institutions, and other relevant bodies as needed.
Phased Implementation Plan
SEBON has a clear plan to introduce these new services to the secondary market gradually. The first phase will see the introduction of Margin Lending. Intraday Trading is planned for the second phase, followed by Securities Lending and Borrowing in the third phase. Finally, the fourth phase will focus on implementing covered Short Selling.
Following this plan, SEBON has stated that the committee has already begun discussion on the draft regulations concerning Margin Lending, marking the start of its important work.
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.
