Kathmandu. KATHMANDU: The Securities Board of Nepal (SEBON) has formed a high-level committee to coordinate and facilitate the phased implementation of the second market reform plan of the securities market.

The committee has been formed under the coordination of Executive Director of the Supervision Department of the Board, Rupesh KC, to implement the second market reform program including margin lending, intraday transactions, securities lending and short selling as per the budget statement of the government for the fiscal year 2083/84 and capital market policy of the same fiscal year.

The committee comprises three representatives from Nepal Stock Exchange (NEPSE), CDS and Clearing Limited (CDSC) and Stock Brokers Association of Nepal (SAI) as members.

According to the board, the committee will recommend on legal, technical, operational and procedural arrangements for the implementation of margin lending, intraday transactions, securities lending and short selling. Likewise, the committee has been given the responsibility to make necessary preparations for the phased implementation of these services, to coordinate and facilitate the works related to secondary market reform and to collaborate with banks and financial institutions and other stakeholders as per the need.

The board has adopted a policy to implement the second market reform program in four phases. In the first phase, margin lending will be implemented, in the second phase intraday transactions, in the third phase there will be securities lending and lending and in the fourth phase covered short selling.

According to the policy, the committee has started discussions on the draft regulations related to margin lending and has started its work.