Market Watch

Nepse disobeying us: Sebon boss

Published by Octron on December 30, 2010

Chairman of Securities Board of Nepal (Sebon) Surbir Paudel said on Wednesday that the modernization of country´s capital market will not be possible unless Nepal Stock Exchange (Nepse) is privatized or another stock exchange is set up to end its monopoly.

“I have arrived at a conclusion that Nepse alone can´t expedite modernization works as it has been operating with traditional mindset in the absence of competitors,” Paudel told a press meet organized to release Sebon´s Annual Report for fiscal year 2009/10.

A total of four companies have registered their application at Sebon, seeking the latter´s permission to set up new stock exchange.

Poudel said the stock market operations will not improve even by applying modern technology in share transactions if reform works are not carried out at Nepse. He also expressed dissatisfaction over Nepse management´s continued apathy in furnishing its financial statement to Sebon.

“Nepse management has been deliberately ignoring the directions of Sebon – the stock market regulator,” he added.

Paudel also informed that Nepse has been defaulting on the payment of Rs 1.4 million in transaction tax to Sebon for fiscal year 2006/07 despite the regulator´s repeated calls.

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