June 9: An initiation taken by Securities Board of Nepal (SEBON) of establishing new stock exchange has been tagged as inappropriate decision taken hastily by Dr Chiranjibi Nepal, Governor of Nepal Rastra Bank (NRB) and Rajan Khanal, Revenue Secretary of Finance Ministry. If a new stock exchange is being established to improve the state-owned Nepal Stock Exchange (NEPSE), then it should be privatized as well, they stressed. However, in a program organized in the valley to mark 25th anniversary of SEBON, Dr Rewat Bahadur Karki, Chairman of SEBON revoking their argument requested all stakeholders to take the step positively as the capital market is gradually expanding.
SEBON has been organizing blood donation program and awareness marches since three days on the occasion of its silver jubilee. In a special program organized to mark the day, speakers engaged in debate regarding the new stock exchange. In the program, chief guest of the program, newly appointed Finance Minister Gyanendra Bahadur Karki said that the capital market is the core of economic development. He stressed on participation from private sector for the development of the capital market in Nepal. Moreover, he praising the achievements made in capital market sector assured of providing government support in coming days.
Meanwhile, Governor Dr Nepal said that NRB will soon sell its shares in NEPSE worth millions to private sector. He argued that while in other countries stock exchanges are merging, Nepal should not add another stock exchange. However, he opined to privatize NEPSE so that to make the market competitive.
Revenue Secretary, Rajan Khanal supporting Dr Nepal’s opinion said that being a regulatory body of securities market, SEBON should act smart accordingly. He requested SEBON to stress on information technology and physical infrastructure for the sustainable development of capital market. According to him, the government is also ready to sell its stake in NEPSE.
SEBON has expedited the process of launching new stock exchange from private sector after it took decision of so two weeks ago. For that, in the first phase, it has requested four companies to collaborate. SEBON Chairman Dr Karki informed of forwarding the process of the new establishment in the program. He clarified that the board which has been regulating nearly 415 capital market institutions took the decision to make the market more effective.
