Parliamentary committee to seek response from SEBON on issuance of license for stock brokers

The Finance Committee under the House of Representatives is set to seek response from the Securities Board of Nepal (SEBON) over the process of issuing licenses for a new stock exchange and brokers.

Today’s meeting of the Finance Committee decided to invite SEBON for a deliberation on the issue and seek its response, said Santosh Chalise, who chairs the Committee as the senior-most member. The process of issuing a license for a new stock exchange has been halted following the government’s direction.

“The subcommittee under the Finance Committee has submitted a report after carrying out a study on the stock market. It has been decided to call SEBON to discuss the matter of issuing licenses for a new stock exchange and brokers and its implementation,” he said.

Earlier on May 21, the Finance Committee wrote to SEBON, seeking the details of the process for issuing licenses for a new stock exchange and stock brokerage firms, and the situation of the implementation of the suggestion report prepared by the Committee.  Following this, the SEBON responded to the Committee on May 26.

In today’s meeting, lawmakers put their views on calling SEBON for its response.

Stating that SEBON was issuing licenses for additional stock brokers although the Committee had written to it on the matter, Finance Committee member Padam Giri demanded investigations into it.

“The recommendation by the subcommittee under the Finance Committee about issuing licenses for a new stock exchange has not been heard. License for stock brokers was issued the same day or after the Committee wrote to SEBON. The question of transparency in the issuance of licenses is being raised,” he said.

He said that cases relating to licenses for a new stock exchange and brokers have been lodged at the Finance Committee, and that the matter should be investigated after forming a subcommittee, he added.