The Securities Board of Nepal (SEBON) has prepared a new action plan to introduce several new regulations and update old rules to make the capital market better for investors.
New Rules for Capital Market Development
Under its action plan for the fiscal year 2083/84, SEBON is planning to bring more than six new regulations. One of the main rules will be for Investment Advisory and Research Analysts. This rule will help investors to get trustworthy and official advice before they invest their money in the market.
To help the bond market grow, the board will also bring a government and corporate bond regulation. Along with this, they will make a separate rule for mergers and acquisitions of listed companies and securities businesses to make the whole process simple and organized.
Rules for Safe Trading and New Features
The board have planned to introduce a Securities Offenses and Punishment regulation. This will make the rules against market crimes very clear. SEBON will also create legal rules for new trading systems. This includes rules for margin trading, short selling, securities lending and borrowing (SLB), intra-day trading, and auction markets.
Another interesting rule is about right renounce. This new rule will allow investors to sell or transfer their rights to buy right shares in the secondary market to others easily.
Updating the Old Regulations
Along with new rules, SEBON is also going to make changes to old ones. The Securities Registration and Issue Regulation, 2073 will be updated to make IPO process more transparent and competitive. They will also amend the Securities Listing and Transaction Regulation, 2075 to modernize the secondary market management.
Other rules like the Mutual Fund Regulation, 2068 and Credit Rating Regulation, 2068 will also be revised. This is to make mutual fund investments and credit ratings more reliable. The broker regulation will also be updated to help brokers expand their work and become more professional.
Lastly, SEBON will improve rules for Central Counterparty (CCP) to make clearing and settlement safe. They will also review their own administrative rules from 2064 and 2068 to make the office work faster.
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.
