Finance committee directs govt to bring new securities bill immediately, SEBON outlines three-phase reform strategy

The House of Representatives' Finance Committee has directed the government to promptly prepare and table a new securities-related bill in parliament. At a meeting held at Singha Durbar on Wednesday, the committee instructed the Ministry of Finance to bring legislation that clearly defines the roles and accountability of SEBON, NEPSE and CDSC.

Committee chairperson Dr Krishna Hari Baskota said the directive was issued after discussions with capital market stakeholders. The committee has asked SEBON to categorize companies based on capital adequacy, technology, net worth, balance sheet and returns before granting IPO approval. It also directed a review of provisions related to founder shareholders' ownership.

The committee called for strict action against those involved in illegal secondary-market practices such as cornering, circular trading and pump-and-dump schemes. It also directed technological upgrades and stronger cyber security to fix the recurring disruptions in NEPSE's online trading system, and instructed the government to move ahead with filling the long-vacant CEO posts at NEPSE and CDSC.

At the meeting, SEBON chairperson Dr Gopal Prasad Bhatta presented a three-phase reform strategy covering both the primary and secondary markets. He said restructuring of brokerage firms in the secondary market would be prioritized. Chairperson Bhatta said about 31 to 32 regulations for NEPSE have already been prepared and will be issued in phases. He added that a standard procedure with a fixed timeline for IPO approval will be developed, and that restructuring will move forward after discussions with NEPSE's board of directors starting next week.