Kathmandu, October 12

Share investors have urged Securities Board of Nepal (SEBON) — the capital market regulator of the country — to implement fully automated trading system, which would grant entry to non-resident Nepalis (NRNs) and other Nepali citizens living abroad into the capital market.

Participating in an interaction programme organised here today, representatives from the investors’ organisations also requested SEBON to grant brokerage licence to commercial banks. SEBON has been mulling over providing brokerage licence to the commercial banks, however, no decision has been taken yet.

Nawaraj Acharya, president of Nepal Capital Market Investors Association (NCMIA), opined that SEBON should take serious action against the brokerage companies engaging in malpractices in the market. “SEBON should scrap the operating licence of broker companies found to be involved in insider trading and other malpractices,” he said.

Investors also urged SEBON to slash broker commission.

Similarly, Acharya also demanded that the limits on margin lending be eased so that small investors are able to utilise the facility.

Likewise, NCMIA urged SEBON to grant broker licence on province basis, with the compulsory provision for each broker to open branches in every district within the province.

Uttam Aryal, chairman of Share Investor’s Association, and Rajan Lamsal, representative from Nepal Investors Forum, also called for reforms on the laws related to the securities market.

Answering the questions raised by the investors, Rewat Bahadur Karki, chairman of SEBON, said that the regulating authority has taken several steps to bring about reforms in the secondary market of the country. He also informed that SEBON would work further for the development of capital market in the country.

As per SEBON, it has carried out investors’ awareness programmes in 63 districts, which directly benefited 13,000

investors.