Kathmandu: In a recent Cabinet meeting, the government has constituted a committee to delve into the requirement for a potential new stock exchange in Nepal. Chaired by former deputy governor of Nepal Rastra Bank (NRB), Chintamani Siwakoti, the study committee includes members with expertise in chartered accountancy and legal practice, although specific names have not been disclosed.
Controversy arose in the past year when the Securities Board of Nepal (SEBON) initiated the licensing process for a new stock exchange on September 18, 2022. This move prompted discussions at various levels, including a writ petition dismissed by the Supreme Court and the Public Accounts Committee of Parliament offering instructions to proceed with the licensing process.
However, on May 9, 2023, the Cabinet directed SEBON to halt the licensing process as the ministry sought clarity on the necessity of further study in the matter. Despite the Board’s response that no further study was needed, the Ministry of Finance presented a proposal to the Cabinet, referencing the earlier decision to suspend the license process.
Considering the prior instructions from the Cabinet and Council of Ministers to suspend the process, the formation of a study committee was deemed necessary. The committee, led by Chintamani Siwakoti, will now undertake an in-depth analysis to determine the viability and need for establishing a new stock exchange in Nepal.