Market Watch

Sebon nod to two merchant bankers

Published by Octron on December 30, 2010

The capital market regulator, Securities Board of Nepal (Sebon), has given permission to Laxmi Capital Market Ltd and Araniko Capital Management Company to conduct merchant banking services. These two firms are out of the eight aspiring merchant bankers, which applied for license, the regulator said. Laxmi Capital, a subsidiary of Laxmi Bank, can now offer services as issue manager, share underwriter, share registrar and portfolio manager. Likewise, Araniko Capital Management can provide service as share registrar and portfolio manager.

Including these two companies, number of merchant bankers in Nepali securities market has reached 13. Out of them, eight are subsidiaries of banks and financial institutions. While all can offer services as share registrar, 12 merchant bankers can operate as issue manager, 11 have been allowed to provide portfolio management services and nine merchant bankers can underwrite shares as well. As the securities market of Nepal develops, Sebon has plans to grant merchant bankers license to conduct other domain functions as well. Later, merchant bankers will be allowed to undertake operations for government and corporate bonds, securities brokerage among others.

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