Finance Committee Directs to Protect Best Interests of Investors
Summary
The House Finance Committee has directed authorities to modernize Nepal’s share market, strengthen investor protection and improve transparency, reliability and cyber security. It also asked the Finance Ministry and SEBON to draft a new securities bill and fill vacant leadership posts at NEPSE and CDS and Clearing Limited.
Key Points
- The Finance Committee asked the Finance Ministry and the Securities Board of Nepal to draft a new securities bill clarifying the responsibilities of SEBON, NEPSE and CDS and Clearing Limited.
- It directed SEBON to prioritize companies for IPO approvals based on capital adequacy, technology, net worth and balance sheet returns, and to review promoter shareholding rules.
- The committee asked NEPSE and related agencies to upgrade technology and data systems, improve cyber security and curb cornering, circular trading and pump-and-dump practices.
- It also urged immediate action against involved individuals and companies and asked the government to fill long-vacant CEO posts at NEPSE and CDS and Clearing Limited.
