Development history of Nepali stock market

The share market of Nepal of has been  in existance for a relatevely short span.The shares market of Nepal started unofficially after Biratnagar jute mills & Nepal bank limited issued  shares to the public  in  1936 A.D.There were no  issue  manager & stock exchange at that time.

After Nepal bank and jute mills, no other institution entered  the capital market for many years.When the company act came implimentattion.Goverment issued bonds in 1964 A.D. A systemetic body and mechanism for trading stocks was not till then.

 

Nepal stock exchange is established in 1976 A.D.  under company act 2021 B.S. Initially it was called securities exchange centre(seo).It was established  to faciliatate and promote the grouth of capital.Initially  it was non-profit organation but it is converted  in to profit making oraganization under  the act implimentation in 1993 A.D. The broker used to trade throught open outery system till 23 august 2007.Nepal has adopted online trading system in 1994 A.D.

The head office of the Nepse is at the opposite of singhdarbar by the side of Rastriya Banijya bank central office. The current paid-up capital of NEPSE is NRs.50,00,00,000. Government of Nepal, Nepal Rastra Bank,Employees Provident Fund,Rastriya Banijya Bank (former, Nepal Industrial Development Corporation),Laxmi Bank Ltd,Prabhu Bank Ltd  and other securities businessperson (brokers) are the shareholders of NEPSE.

 

Ownwership structure of Nepse

S.N.	Shareholders	ownership (%)	No.of shares
1.	Goverment of Nepal	58.66	2933122.5
2.	Nepal Rastra Bank	14.60	729989.5
3.	Employees provident fund	10.00	500000.00
4.	Rastriya Banijya Bank	6.14	306816
5.	Laxmi bank limited.	5.00	306816
6.	Prabhu bank ltd.	5.00	250000
7.	others	0.60	30072

Importance events in share market of Nepal.

*Issue of shares of Biratnagar jute mills and Nepal bank limited(1936)

*company act implementation(1964)

*Establishment of securities Exchange centre(1967)

*Formulation of securities exchange  act(1983)

*commencement of trading of securities listed under the ecurities act(1984)

*Issue of shares of Rastriya Beema company(1984)

*First Amendment to the securities Exchange act(1992)

*Establishedment of nepal stock Exchange limited Nepal(1993)

*Establishment  of securities Board of Nepal(sebon 1993)

*launch of Nepal's first mutual fund NEPA(1993)

*Goverment debentures start trading in Nepse(2006)

*Issue of securities  act(2006)

*start of computerized trading of securities(2007)

*Adoption the policy of circuit breaker  and trading halt(2007)

*Trading time increase to three hours from two hours.

*start of trading of promoters shares(2007)

*Transformation of Nepal stock exchange in to a for a profit  organation.

*start of share trading from outside the valley throught brokers(2009)

*establishment of central depository systemCDSC(2010)

*Establishment of ICRR Nepal ,the first credit rating company in Nepal(2012)

       2013-current

*start of trading of dematerliazed securities(2014)

*Full implementation of trading of demat securities(2015)

*Development of Nepse apps(2016)

*Trading time increase to four hours(2016)

*Market depth available for view to the generl public (2016)

*ASBA system implemented in primary share offering(2016)

*Madatory 10 shares aalotment for application in primary share issue

*Implementation of eletronicsDTS/EDIS(2018)

*Online share trading (2018)

*Launch of mero share mobile app(2020)

Members of NEPSE are permitted to act as intermediaries in buying and selling of government bonds and listed corporate securities. At present, there are 50 member brokers with 43 branches, who operate on the trading floor as per the Securities Act- 2007, rules and bye-laws. The broker house and its branches are expanded over 21 different cities of Nepal.