Kathmandu, Jan. 22
The Securities
Board of Nepal (SEBON) has issued licence to the Nagarik Stock Dealer Company
Limited to work as a stock dealer in the share market.
The Citizen
Investment Trust promoted company has applied to the SEBON for the license.
According to
Niraj Giri, spokesperson of the capital market regulator, said that the
Securities Businessperson (Stock Broker and Stock Traders) Bylaws, 2008 was
amended to allow the entry of new company in the business.
The budget of
the current Fiscal Year 2020/21 had also incorporated the programme to run the
stock dealer to promote institutional investment in the capital market.
The board said
in a statement that the stock broker company would help in filling gap of
institutional investors in the share market. Nepali share market is dominated
by small investors.
Nepal Stock
Exchange (NEPSE) had issued the Stock Dealer Operation Procedure, 2020 in last
November.
A stock dealer
is the business entity that buys and sells the securities in the share market
on its own account. It is not like the share brokers as it buys and sells the
shares as a part of its business while the brokers buy the securities on behalf
of the investors.
NEPSE has
barred the stock dealer to involve in the transaction of listed small
companies. The dealer can buy the securities of the company if the latter has
at least 10,000 investors and is in profit for the past three years. Such
company should also have more than Rs. 200 million paid up capital and share
transactions on at least 80 per cent days of the business days.
Published in The Rising Nepal daily on 23 January 2021.
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