January 14: Securities Board of Nepal (SEBON) has initiated the process of selecting commodity exchange companies, six months after receiving the applications.
The process, which had remained stalled for quite some time, picked up pace after the appointment of Bhisma Raj Dhungana as chairman of the board. Dhungana took charge of office on Friday (January 10).
SEBON had called applications from companies interested in commodity exchange operations last June. A total of six companies had filed applications and a five-member selection committee was formed to shortlist the candidates.
“But the vacant post of chairman had prevent the process from moving ahead,” said Niraj Giri, member of the selection committee and executive director of SEBON.
Newly-appointed Chair Dhungana said, “I am taking stock of the current situation from the selection committee.” He further added, “The process will gain pace soon.”
However, he stated that an exact timeline for completion of the process could not be fixed. “Some companies may not have met the requirements or we may need to ask them for additional documents,” he said adding, “So, we cannot practically state an exact time for issuing the license.”
The board had initially stated that it would issue license for two commodity exchange companies but Dhungana informed that that number could now vary based on the applicant company’s qualifications and the market situation.
According to the board, the companies will receive the scores on the basis of their submission of important documents. The companies will be evaluated on the basis of their paid-up capital, strategic partner, market position, prioritization of domestic and foreign stocks, among others.