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.
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