Kathmandu. The Securities Board of Nepal (Sebi) has unveiled the policy and programme for the current fiscal year 2082/83 BS.

According to the policy and programme unveiled by the board, the securities board will be restructured and provisions will be made for the revenue secretary and deputy governor to be represented in the board, the representation of the private sector and other ministry bodies will be removed by adding expert members.

Provision will be made to provide margin loan through securities entrepreneurs for securities transactions and companies in the hydropower sector can issue primary shares only after starting production.

Instead of investing loans in government institutions, the government will make arrangements to mobilize financial resources for investment by issuing bonds, restructuring the Nepal Stock Exchange for the participation of the private sector and capital enhancement.

In addition to the Nepal Stock Exchange, the cds and clearing limited, which provides safe depository service of securities with the participation of other organizations, will also be restructured, the cost of issuing shares and bonds will be reduced and the process will be simplified to facilitate the private sector manufacturing companies to mobilize capital from the capital market.

The government has decided to adopt a transparent method for issuing shares through premium and book building process and amend the regulations related to specialized investment funds to increase foreign investment in private equity and venture capitals.

Effective coordination will be established between the Securities Board, Nepal Stock Exchange and the Office of the Registrar of Companies to allow private equity and venture capitals to easily sell their shares after the expiry of the investment period and withdraw the investment.

The lock-in period of securities owned by private equity and ventures capitals will be increased from the current one year to two years from the date of allotment, the existing fund management fees, registration and issuance fees of private equity and ventures capital will be reduced by 50 percent.