Nepal Stock Exchange to Undergo Privatization in Two Phases Based on Restructuring Committee Report
Summary
Nepal Stock Exchange (NEPSE) plans to privatize in two phases by bringing in a foreign strategic partner and reducing government ownership, aiming to modernize operations and expand the capital market.
Key Points
- Nepal Stock Exchange (NEPSE) will undergo privatization in two phases as per the government restructuring committee's report.
- A foreign strategic partner with at least 20 years of experience from a top global stock exchange will be introduced, acquiring 15-25% shares in the first phase.
- Government ownership will reduce from majority to 25% in phase one and to zero in phase two, with shares issued to private financial institutions and the public.
- NEPSE's capital will increase from NPR 1 billion to 3 billion, alongside improvements in corporate governance, new financial instruments, and restructuring of its subsidiary CDS and Clearing Limited.
