Kathmandu. The Securities Board of Nepal (SEBON), Nepal Stock Exchange Limited (NEPSE), CDS and Clearing Limited (CDSC) and Stock Brokers Association of Nepal (SEBON) have jointly held discussions with the objective of reducing systemic risk seen in the securities market by implementing the settlement guarantee fund.

The meeting was held at Sebon’s office at Khumaltar on Thursday. The meeting held detailed discussions on the operational structure of the Settlement Guarantee Fund, fund management process and the timeline along with the action plan required for its implementation.

The participants expressed their views on risk management, default management and the role of the concerned bodies and securities entrepreneurs in order to enhance investors’ confidence by strengthening settlement assurance.

Concluding that the Settlement Guarantee Fund was indispensable for the stability of the market and protection of investors’ interests, NEPSE and CDSC presented their preparations so far regarding the system and clearing. Similarly, the Brokers Association had given necessary suggestions based on its practical experience in market operation.

The meeting also agreed to move ahead in a coordinated manner among all the stakeholders by holding further technical discussions in the coming days for the smooth and effective implementation of the Settlement Guarantee Fund.