Kathmandu. The Securities Board of Nepal (SEBON) has become flexible following the agitation by investors and directors of listed companies. The Board has committed to work as per the suggestions given by the Capital Market Reform Task Force as per the demand of the investors.

The Board has prepared an action plan to implement the recommendations of the Capital Market Reform Task Force. On Sunday, investors and directors of listed companies picketed the board demanding immediate implementation of the mandate given by the task force. As a result, SEBON has pledged to implement the recommendations made by the task force.

Other members of the board are Dipendra Agrawal, promoter and investor of City Hotel, Tilak Koirala, among others. Agrawal said that he has put forth 18 demands to gherao the office. He said that he has assured that his demands will be fulfilled and if his demands are not met, he will launch a big agitation after Tihar. They sat outside the gate for some time and surrounded the office. After some time, he broke the security cordon of the police and entered the office. The investors have also demanded the immediate implementation of the recommendations made by the capital market reform suggestion taskforce.

There are 9 immediate tasks that need to be done on the part of the Securities Board. The first task of the Securities Board of Nepal is to implement the margin trading system through the securities brokers. A study committee has also been formed for this. As soon as it submits its report, it will be implemented as soon as it is implemented. Joint Spokesperson of the Board, Tola Kanta Neupane, said that the deadline for completion of the project is mid-November.

Similarly, certain standards will be set and enforced to maintain uniformity with regard to the equipment provided by CDS and Clearing Limited. It has also been guided. After approving it, the issue will also be completed, according to the action plan. The deadline for this issue is also to be implemented by the end of November.

The board will immediately instruct the listed companies to make arrangements for the payment of dividend tax by the concerned organization itself while distributing bonus shares to the investors. The action plan states that the board will give immediate direction.

A securities broker shall maintain uniformity in the provisions relating to the payment of liability or return arising from the amount created by the investment if the investor fails to pay the amount as per the purchase order on time or if the securities broker fails to pay the investor on time. For this, the Board shall maintain uniformity in the provision by immediately studying the benchmark rate of return or liability generated from the amount in case of failure to transact the amount on time. For which the deadline has been fixed till November 30.

If the broker is late in making the payment after the directive of the board, the investor will have to pay the broker with interest, and if the broker delays, the investor will have to pay the investor with interest. The Securities Board of India (SEBON) has already directed the CDSC to allow investors to open two or more beneficiary accounts. The work will be completed by November 15, according to the action plan.

The board has suggested that the classification of listed companies by the Nepal Stock Exchange Limited (NEPSE) should be made objective on the basis of financial soundness, liquidity and corporate governance and after the classification, the board will make it mandatory to take 100 percent cash margin while trading in the Z-group companies.

Neupane said that the necessary grievance management mechanism would be established and operated for immediate redressal of investors’ problems and complaints, and various training and workshops would be conducted for capital market literacy among investors.