Kathmandu. The Finance Committee of the Federal Parliament has directed the government and the Securities Board of Nepal (SEBON) to immediately formulate a new securities bill and present it in the parliament.

After holding discussions with the stakeholders of the capital market, the Committee has drawn the conclusion that a new legal framework is needed to make Nepal’s capital market modern, technology-friendly, systematic, transparent, credible and investment-friendly.

Chairman of the committee, Dr. Krishna Hari Budhathoki said that the committee has been directed to bring the bill clarifying the role, responsibility and accountability of the bodies concerned from the issuance, listing, market operation and regulation to the protection of investors’ interests.

The committee has directed SEBON to stratify and prioritise the company on the basis of capital adequacy, technology, net worth, balance sheet and returns before the IPO issuance. It has also been asked to review the share ownership provisions that the promoters are required to hold.

Similarly, the committee has directed to expedite the restructuring process of the Nepal Stock Exchange (NEPSE) and to remove the obstacles seen in online trading, network and data system. The Ministry of Finance, SEBON and NEPSE have been asked to ensure the highest level of cyber security along with the upgradation of technology.

The committee has also asked to strictly control the artificial manipulation in the secondary market. SEBON and NEPSE have been directed to take immediate action against the individuals or companies involved in the activities of cornering, circular trading and ‘pump and dump’.

The meeting also directed the Ministry of Finance to expedite the process for filling up the vacant posts of CEO of NEPSE and CDS and Clearing Limited (CDSC).