Kathmandu. KATHMANDU: The committee formed to study the restructuring of the Nepal Stock Exchange (NEPSE) has submitted its report to the Ministry of Finance today.
A five-member study committee led by former chairman of the Nepal Accounting Board Prakash Jung Thapa submitted its report to Finance Minister Rameshwor Khanal. Other members of the committee are Nepal Rastra Bank (NRB) Director Subhash Chandra Ghimire, Securities Board of Nepal (SEBON) Deputy Executive Director Rupesh KC, Securities Board of Nepal (SEBON) Deputy Executive Director Niraj Giri and other members of the committee.
The government had given 50 days to submit the report along with suggestions on NEPSE restructuring. According to sources, the committee has prepared a report with short-term, mid-term and long-term suggestions for NEPSE restructuring.
Presently, the paid-up capital of NEPSE stands at Rs 1 billion. Currently, the government is the largest shareholder of NEPSE. NEPSE holds 5,866,245 units (58.66%) of the government’s shares.
Similarly, Rastriya Banijya Bank is the second largest shareholder. The bank has 1,122,974 units (11.23 percent) shares in NEPSE. Employees Provident Fund (EPF) owns 1 million units (10 percent) of shares.
Similarly, Nepal Rastra Bank has 950,637 units (9.51 percent), Prabhu Bank 500,000 (5 percent), Laxmi Sunrise Bank 5 percent (5 percent) and other groups have 60,144 (0.60 percent) shares.
The committee has suggested increasing the current paid-up capital to Rs 3 billion following the restructuring of NEPSE. For this, the report has included suggestions ranging from issuing 30 percent shares to the general public to selling shares to domestic institutional groups or bringing in foreign strategic partners.
The report has also suggested that a technology-savvy market operator should be made during the restructuring of Nepse. Sources said that the work efficiency of the human resources should be increased.
