Private sector can run stock exchanges

The government has decided to allow the private sector to operate stock exchange market. Till date, it is the government-run public sector that has been operating the bourse.

The way for the private sector opened after the Security Market Operations Regulation 2064 BS came into force.

This regulation was brought citing that the economy would not prosper unless there was healthy compitetion.

Altogether 18 companies have jointly submitted an application to the governmentn asking it to allow them to operate new stock exchange markets.

These companies include banks, financial institutions, life insurance companies, nonlife insurance companies, stockbrokers and commodity exchange firms.

The founder members of the proposed stock exchange market are Asian Life Insurance Company Ltd, Commodities and Metal Exchange Nepal Ltd, Mahalaxmi Finance Ltd, Himchuli Bikas Bank Ltd, Guheshwori Merchant Banking and Finance Company Ltd, Butwal Finance Ltd, N L G Insurance Company Ltd, Subhalaxmi Finance Ltd, Birgunj Finance Ltd, Siddhartha Finance Ltd, Tribeni Bikas Bank Ltd, Premier Finance Ltd, CMB Finance Ltd, Central Finance Ltd, Premier Insurance Company Ltd, Sagarmatha Insuarance Company Ltd, Siprawi Securities Pvt Ltd and Lalitpur Finance Ltd.