Thursday, October 3, 2019

Sebon to change guidelines in line with Act amendment

The capital market regulator has started the process to amend its guidelines to make it more contextual by improving the existing laws related to the securities market. The regulator is also going to amend its directives, bylaws, merchant banker guidelines, and other laws related to the securities market in line with the Securities Act amendment.
Securities Board of Nepal (Sebon) is amending the guidelines also in line with the government move as the Finance Ministry has already submitted an amended Securities Act at the Federal Parliament for approval. The regulator has also submitted its concerns and suggestions on the act to the Finance Ministry, before the ministry tabled it at the House.
“We have already started the process to amend our guidelines,” chairman of Sebon Rewat Bahadur Karki, confirmed adding that the regulator will however not release the guideline until the Securities Act is endorsed by the Parliament. “We have included provisions according to the global practices that are followed in the international markets.”
The amendment of Securities Act states that a person who has been assigned the post of chairman of Sebon will not be allowed to lead any other organisation that is affiliated or connected to the regulatory board after retirement. “The amendment has also included a provision that bars executive directors or deputy executive directors of Sebon to lead any organisation that is affiliated with the board for two years after their retirement.”
The regulator had recently issued new guidelines for all listed companies of Nepal Stock Exchange (Nepse) on corporate governance and accountability of companies towards their shareholders. “The guidelines will make the stock market more transparent and stable by promoting ethical practices among the listed companies, thereby making them accountable towards their shareholders,” Karki added.

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