SEBON to increase number of share brokers and stock dealers

Kathmandu, July 28

The Securities Board of Nepal (SEBON) has unveiled its Policy and Programmes on Securities and Commodities Market for Fiscal Year 2022/23, with plans of expanding the number of share brokers and stock dealers.

"To expand the capital market across the country and make it financially strong, new brokers will be added. Likewise, to increase the liquidity and market depth in the secondary market, new stock dealer licenses will be distributed," Chairman of the SEBON, Ramesh Kumar Hamal said while unveiling the policy and programmes at a function organised in Lalitpur on Thursday.

However, the board also announced a contradictory policy to promote merger and acquisition of the institutions, including the brokers and merchant bankers, registered at the SEBON. A directive would be formulated to facilitate the merger and acquisition.

This year, the capital market regulator has also planned to formulate rules and bylaws on warehouse to operate commodity market, commodity brokers, market makers and clearing. The policy has also announced to call for applications for the commodity brokers and market makers, provide licenses to them and create an environment to operate them.

Likewise, a risk-based supervision manual would be formulated and implemented for the monitoring and supervision of the securities brokers.

The SEBON also expressed its commitment to facilitate the connectivity of investors' bank account to their demat account by transitioning the secondary market transaction to a fully automated one.

It included most of the programmes suggested to the Ministry of Finance to be addressed in the budget of the current fiscal 2022/23 in its annual policy and programmmes.

Legal provisions would be reformed to make it mandatory for the companies with a capital of Rs. 1 billion or more or conducting transaction of more than Rs. 5 billion, companies using natural resources or receiving grants, concessions and tax exemptions from the state to be listed in the stock market by the public issuance of securities. "Company Act, 2006 would be amended in coordination with the Company Registrar's Office to facilitate such a step," read the policy and programme.

It stated that the wrong practices in the stock market would be discouraged with the adoption of RegTech based on artificial intelligence and trained world-class technical human resources.

Issues like maintaining reservation in the initial public offering for the Nepali migrant workers, inviting investment from the non-resident Nepalis in the stock market, establishing a SMEs platform at the Nepal Stock Exchange to trade small and medium enterprises' shares, and connecting the commercial agricultural enterprises to the share market are included in the policy of this year.

Similarly, an automated electronic auction system would be prepared and implemented to support book building system and to attract sustainable and established companies to the stock market.

Large utility companies will also be listed at the share market with the implementation of fair and transparent system while commercially successful and established business institutions would be attracted to the stock market to enhance the public ownership to them and create a balance in the market, said Hamal.

 Published in The Rising Nepal daily on 29 July 2022. 

Four days to go, East-West Highway upgrading witnesses 18.5 % progress

Kathmandu, July 27

Overall progress of upgrading work of the Narayanghat-Butwal section in the East-West Highway has been just 18.44 per cent just four days before the deadline of the project expires.  

The strategic road is the major trade route of the country and the only highway to connect the ends at the eastern and western border.

The upgrading of the Narayanghat-Butwal section of the road is divided into two packages – Narayanghat to Daunne 64.42 km and Daunne to Butwal 48.53 km. Both the packages of the Asian Development Bank (ADB) funded project are carried out by China State Construction Engineering Corporation Limited.

The road upgrading work began on 7 February 2019 with the deadline of 1 August 2022. The highway will be developed into four lanes and service lanes in the urban areas, four lanes without service lanes in rural areas and three lanes in Daunne hill area.

But the status of the road is pathetic and commuting along it has long been a nightmare. It takes four to five hours to complete 120km travel on the section of the highway that is being upgraded. Bhoj Raj Poudel of Patihani in Narayanghat expressed his disappointment after travelling for more than five-hour to reach Butwal from his home this week.

The road turns dusty during sunny days and muddy in rainy days which has not only impacted the quality travel of the people but also created negative impacts on the local people.

Various observations and monitoring, including by the Development and Technology Committee (DTC) of the House of Representatives, have concluded that the road has become a 'curse' for the local people and the travelers. The drainages along the road are damaged which has caused inundations in the nearby settlements while the water supply pipelines have been damaged at multiple locations, a report of the DTC last year had concluded.

Meanwhile, a meeting of the DTC on Wednesday expressed deep concerns to the poor progress of the road and directed the government to initiate a process to review the entire project and complete the remaining job within the given deadline.

After a discussion with the Minister for Physical Infrastructure and Transport, Mohammad Ishtiyaq Rayi, ministry's secretary, chief of Narayanghat-Butwal Road Project and other concerned officials, the House Panel said that a situation has arisen where the contract would be cancelled due to poor and disappointing progress of the project.

It has clearly directed the government, the Infrastructure Ministry and Prime Minister's Office to make decision to complete the project in time without cost overrun.

Meanwhile, the DTC directed the government to review the terms and conditions of the road projects being constructed or upgraded with the loan and grant support from various friendly countries since such projects are lagging in quality and time.

Likewise, it asked the Infrastructure Ministry to immediately formulate policy standards to construct the access roads as the current practice of developing such facility has inflicted a serious damage to the national highways across the country. 

Published in The Rising Nepal daily on 28 July 2022. 

Nabil opens application for Social Entrepreneurship Programme

Kathmandu, July 27

Nabil Bank has opened applications for the second batch of Social Entrepreneurship Programme.

"With the successful operation of the first batch of 'Nabil Social Entrepreneurship' programme, we have called applications for the second batch of 20 potential startups," the bank said.

According to the bank, this programme, conducted in collaboration with the School of Management under the Tribhuvan University Faculty of Management and with the technical support of the School of Social Entrepreneurship India, will help achieve the goal of sustainable development by bringing about positive changes in the society.

Nepali citizens aged between 18 and 50 years who have the latest ideas in the fields of agriculture, tourism, energy, environmental protection, information technology, etc. can apply for the enrollment in the programme.

This programme aims to promote social entrepreneurship and will last for six months.

In addition to it, three days of residential discussion will be organised every month and the rest of the days have been prepared in the form of practical exercises at the concerned entrepreneur's workplace. Nabil said that it will help all the participants to solve the practical difficulties encountered in doing business through a mentor for all the participants during the training period and for the remaining six months for one year.

Altogether 20 people were selected in the first batch of this fellowship program,e which was started to promote economic and social transformation. The participants from various backgrounds received training on various topics such as legal and tax related knowledge, business branding, marketing, etc. required for social enterprise operation.

Technical and practical knowledge was provided to the participants through various interactive programmes and procedures. The last day of application is August 20.

Published in The Rising Nepal daily on 28 July 2022. 

NBL and Ncell sign agreement for free data pack

Kathmandu, July 27

An agreement has been signed between Nepal Bank Limited and Ncell Axiata, regarding the non-data charges to customers using mobile banking of the bank.

Chief Executive Officer of the bank Krishna Bahadur Adhikari and Ncell's CEO Andy Chong signed the agreement at a programme the other day in Kathmandu.

According to this agreement, the data will be available free of charge to the bank's customers who use Ncell's SIM card, and use Nepal Bank's mobile banking app.

Nepal Bank has already provided this facility to customers using Nepal Telecom's SIM. From now on, there will be no data charges when Nepal Bank customers use the mobile banking app of this bank through the networks of both Nepal Telecom and Ncell, the bank said in a statement on Wednesday.

According to the bank, this plan has been introduced with the aim of promoting digital banking and making customers accustomed to cashless transactions.

CEO Adhikari expressed his belief that the relationship with Ncell will be strengthened in the coming days. Similarly, Andy said that he was very happy to have a business partnership with the Nepal's first bank.

"Providing financial services to about 2.2 million customers through 219 branches, 183 ATMs and 47 extension counters across Nepal, this bank is currently advancing in a competitive manner by providing banking service facilities through modern banking technology by making extensive improvements in customer service," said Adhikari. 

Published in The Rising Nepal daily on 28 July 2022. 

Redmi launches Buds 3 Lite in Nepal

Kathmandu, July 27

Xiaomi has launched Redmi Buds 3 Lite, a newest device in the accessories category, in the Nepali market.

The company claimed that the device has impressive features along with affordable price, ergonomic design, battery life of up to 18 hours and many other features that provide users with quality sound.

Buds 3 Lite weighs less than 35 grams. Its new lock-in design earbuds are available with a double-tire silicone band for a better fit in the ear.

"For a better and clearer in-call audio experience, Buds 3 Lite is built with Bluetooth 5.2 that provides a seamless in-call audio experience," the company said in a statement. It gives up to 18 hours of music playback in a 5-hour charge, and is dust and water resistant.

Redmi Buds 3 Lite is available in black color for Rs 3,399. 

Published in The Rising Nepal daily on 28 July 2022. 

Pharmaceutical producers seek simplified registration process

Lalitpur, July 26

Association of Pharmaceutical Producers of Nepal (APPON) has said that the patent registration process for pharmaceutical companies in Nepal was complex and cumbersome.

The government needs to simplify the process in order to promote innovation and business growth, said Prajwal Jung Pandey, president of the association at a workshop on 'Preparedness of Nepal’s pharmaceutical sector in the face of LDC graduation' organised by South Asia Watch on Trade, Economics and Environment (SAWTEE) and Third World Network (TWN) on Tuesday.

He also said that Nepal has not been able to effectively grab the benefits provided to the LDCs.

According to him, in the face of LDC graduation, private sectors, along with the government, need to move ahead in a collaborative manner to ensure that transition is smooth. 

Dr. Prativa Pandey, Executive Committee Member, Intellectual Property Protection Society Nepal (IPPSON), said that there were gaps in ecosystem, innovation and standards. She emphasised that research and development (R&D) ecosystem should be strengthened in order to facilitate innovation.

 “As a civil society, we need to increase the capacity of the government in strengthening R&D," she said.

However, Dr. Shiva Prasad Shrestha, Senior Vice President, Nepal Medical Association, lamented that Nepal’s pharmaceutical companies are limited to producing basic drugs rather than complex and life-saving drugs.

He also stated that unless the government accords effective protection to domestic producers, Nepal’s pharmaceutical sector would face a difficult time.

In the workshop, experts discussed the challenges facing by Nepali pharmaceutical industry in the context of new intellectual property regime after Nepal’s graduation from the least-developed country (LDC) status and they identified the major policy and institutional challenges for the optimal use of Trade Related Aspects on Intellectual Property Rights (TRIPS) flexibilities, and suggested way forward.

Dr. Posh Raj Pandey, chairperson of SAWTEE, suggested that Nepal could still avail different flexibilities even after the graduation, immediately during the transition phase and later as a developing countries too while strengthening the capacity of domestic pharmaceutical manufacturers.

K.M. Gopakumar, Senior Research and Legal Advisor of TWN, emphasised that an apt policy response was needed to minimise the impacts of LDC graduation in domestic producers and to ensure access to medicine in an affordable way.

He suggested improvements in the draft law on intellectual property such as decreasing the scope of patentability by disallowing multiple patents in a single molecule, expanding provisions related to compulsory licensing, and by introducing a transition period before the product-patents are implemented.

Likewise, he highlighted the roles that government could play in strengthening the pharmaceutical sector, for instance through providing incentives such as tax breaks in the use of IP flexibilities, favouring domestic producers in procurement policy, providing R&D funds, and by ensuring that patents apply only to inventions, and not to discoveries.

Bharat Bhattarai, Director General, Department of Drug Administration, stated that the government has acknowledged the need for policy reforms in the pharmaceutical sector and the findings of the study have been successful in providing robust policy recommendations. 

Published in The Rising Nepal daily on 27 July 2022. 

Japan extends grant of Rs. 350 m for HR development scholarships

 Kathmandu, July 26

The Government of Japan has decided to extend grant assistance of up to 376 million Japanese Yen, equivalent to Rs. 350 million Nepal for the implementation of the Project for Human Resource Development Scholarship (JDS).

Tamura Takahiro, Charge d’affaires ad interim of the Embassy of Japan in Nepal, and Finance Secretary, Madhu Kumar Marasini, signed notes to this effect on Tuesday.

The JDS grant offers Nepal’s young government officials two-year Master's Degree courses and three-year Doctoral level courses in reputed Japanese universities. The Government of Japan has received more than 120 Nepali government officials to Japan.

After completion of studies, the JDS fellows are expected to engage in formulating and implementing socio-economic development plans and evolve as leaders in Nepal, as well as contribute to the expansion and strengthening of friendly relations between the two nations, the embassy said in a statement.

This year marks the 120^th anniversary since the first eight Nepali students were dispatched to Japan for their studies. “I hope that the grant assistance we are signing on this commemorative year will help even more Nepali officials to improve their capacity and contribute to taking friendly relations between Japan and Nepal to new heights,” Tamura said.

The Embassy of Japan also expressed its confident that the objectives envisaged by the JDS will be achieved, and contribute towards further strengthening the relationship, friendship and cooperation between the peoples of Japan and Nepal.

Published in The Rising Nepal daily on 27 July 2022.