Security Board of Nepal (SEBON)
chairman Dr. Rewat Bahadur Karki Friday said that there should be an incentive
package to motivate the private companies to be listed in the stock exchange.
Speaking at an interaction on
‘Need of New Dimension and Derivatives in Nepali Capital Market’ organized by
Media Plus, he said, “The private sector is not interested to be listed in the
Nepal Stock Exchange (NEPSE). If we want more private sector companies to be
listed in the stock exchange, the government should offer some incentives.”
He suggested an overhaul in
present legal and structural provisions as they barred the real sector
companies from being listed in the stock exchange.
“Recently, there were
discussions about forcing Ncell to be listed in the stock exchange. The
government or the regulator should have worked about the modalities and
incentives required to have more private companies in the stock market,” said
the chief of the security market regulator.
Till date 240 companies are
listed in the stock market.
Dr. Karki demanded for a
separate regulator in the sectors that needed to be mandatorily listed as the
public limited companies like the hydropower sector in order to ensure the
safety of the public money.
“If we allow every hydropower
company to raise money from the public after getting registered at the Company
Registrar’s, that might be a disaster.”
He said that the country did not
need a second stock exchange.
He noted a recent merger of
three stock exchange in Pakistan to create a national stock exchange and said
that the international scenario was moving towards merger and unification.
Niranjan Phuyal, assistant
manager of NEPSE, said that instead of establishing another stock exchange,
NEPSE should be upgraded and strengthened because the establishment of another
exchange would increase operating cost.
The NEPSE was soon announcing a
tender to implement complete online system in the stock market, he said.
Phuyal informed that the NEPSE
was positive about raising the number of stock brokers.
Central Depository System and
Clearing Limited chief executive officer Dev Prakash Gupta said that very few
companies were listed in the stock market and efforts should be made to
increase the market participation.
He said that economic and
political events had minimal impact on the stock market in Nepal .
“Investors are focused on
capital gain rather than the dividend. Most of the investors are investing
their money without any fundamental analysis of the market and listed
companies. Therefore, sometimes Nepalese stock market is driven by rumours.”
Gupta informed that all shares
would be dematerialized within a week. “So far shares of 184 companies have
been dematerialized and 11 are in the process.”'
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