Kathmandu, June 12: The Finance Committee under the House of Representatives is set to seek response from the Securities Board of Nepal (SEBON) on the process of issuing license for a new stock exchange and brokers.
Today’s meeting of the Finance Committee decided to call the SEBON for a deliberation on the issue and seek its response, said Santosh Chalise, who chairs the Committee as the senior-most member. The process of issuing a license for a new stock exchange has been now halted following the government’s direction.
“The subcommittee under the Finance Committee has submitted a report after carrying out a study on the stock market. It has been decided to call the SEBON to discuss the matter of issuing license for a new stock exchange and brokers and its implementation,” he said.
Earlier on May 21, the Finance Committee wrote to the SEBON seeking details of the process for issuing license for a new stock exchange and stock brokerage firms, and the situation of the implementation of the suggestion report prepared by the Committee. Following this, the SEBON responded to the Committee on May 26.
In today’s meeting, lawmakers put their view of calling the SEBON for its response.
Stating that the SEBON was issuing license for additional stock brokers although the Committee had written to it on the matter, Padam Giri demanded investigations into it.
“Recommendation by the subcommittee under the Finance Committee about issuing license for a new stock exchange has not been heard. License for stock brokers has been issued the same day or after the Committee wrote to the SEBON. Question about transparency in the issuance of license is being raised,” he said.
Saying that cases relating to license for a new stock exchange and brokers have been lodged with the Finance Committee, and the matter should be investigated after forming a subcommittee, he added.
In a controversial decision, SEBON had issued Letters of Intent (LOIs) for 16 brokerage firms to expand security trade business in micro level as well. A total of 45 companies applied for the license. SEBON has already issued 50 brokerage companies.
