KATHMANDU: The Finance Committee of the Federal Parliament has issued two directives to the Securities Board of Nepal (SEBON) to reform the capital market of Nepal and streamline the IPO issuance process.

The Committee has directed the government to make necessary legal and policy reforms to make the capital market modern, technology-friendly, systematic, transparent, credible and investment-friendly.

The committee has also directed the Ministry of Finance and the Securities Board of Nepal to formulate a new securities bill that clarifies the roles, responsibilities and accountability of bodies concerned in the issuance, listing, market operation and regulation and protection of investors’ interests.

Likewise, the board has been directed to prioritise the company on the basis of capital adequacy, technology, net worth, balance sheet and return before granting permission to the company for the IPO issuance.

The committee has also directed the Securities Board of Nepal (SEBON) to review the provisions related to the ownership of shares to be held by the promoters.