Friday, June 28, 2019

Two commodity exchange firms to come into operation soon


Kathmandu, June 27:
 The Security Board of Nepal (SEBON) has said that two commodity exchange companies would come into operation soon.

Of the six companies, which have applied to run the commodity exchange, only two are getting approval to work in the commodity trading market, said Executive Director of the board Niraj Giri, Thursday.  

As per the Commodities Act 2074, the SEBON will issue the license of commodities exchange within four months and commodities trading business, clearing and settlement business or warehouse within three months.

Some  months ago, the SEBON had sought applications for the two commodity exchange companies, cancelling the earlier applications of five companies.

Nepal Mercantile Exchange, Commodity Future Exchange, Risal Commodity and Derivative Exchange, Multi Derivate Exchange Nepal, National Commodity Exchange and Nepal Derivative Exchange had applied to run the commodity exchange.

Earlier, the board had rejected the proposals of Commodity Futures, Nepali Commodity, Nepal Mercantile, Risal Commodity and Multi Derivative saying that they lacked documents as per the Commodities Act 2074.

The same companies have applied for the exchanges with some adjustments in the documents and promoters. The SEBON has not issued any license for the commodity exchange or trading business after the Act’s ratification.

A commodity exchange company should have paid-up capital of Rs. 500 million

The commodity exchange will provide a market place or facility to purchase, sale or exchange commodities in the same place continuously through commodities contract. They will also enlist commodities for trading and operate commodities trading.

Published in The Rising Nepal daily on 28 June 2019. 


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