MARKET FOR TRADING OF SECURITIES

PRESENTED BY:
DEEPTI BHATTA
INTRODUCTION TO NEPSE

• Nepal stock exchange (NEPSE) is only stock exchange of Nepal located in

Singha Durbar Plaza , Kathmandu, Nepal. The government had set up a security
buying and selling center in Nepal in 2033 B.S. The same center transformed
into Nepal Stock Exchange limited (NEPSE) in 2050B.S.
• It was established under the Companies Act-2006 and operates under Securities
Act-2007. NEPSE opened its trading floor on 13 January 1994 (29 Poush 2050).
• Market Capitalization data was reported at 3,281,668.010 NPR mn in May
2024. This records an increase from the previous number of 3,181,201.630 NPR
mn for Apr 2024.
OBJECTIVE OF NEPSE

• The basic objective of NEPSE is to impart free marketability and liquidity

to the government and corporate securities by facilitating transactions in
its trading floor through member, market intermediaries, such as broker,
market makers etc.
• The main purpose of the stock exchange is to trade the listed securities,
NEPSE has been working to register the publicly issued securities in the
secondary market for easy trading . This action is called listing.
OBJECTIVE…..

• In line with its objective of trading shares, bonds, mutual funds units and other
securities through member brokers, NEPSE has been playing the role of a
leading regulatory body in terms of market operation , listed companies and
securities dealers.
• At present NEPSE is providing facility of buying and selling securities to
general investors through 50 member brokers and 41 Remote Work Station
(RWS) in major cities inside and outside Kathmandu valley. The broker house
and its branches are expanded over 21 different cities of Nepal.
SHARE OWNERSHIP IN NEPAL STOCK
EXCHANGE.
• NEPSE is promoted by the Government of Nepal (GON) with 58.66
percent of the ownership of the Nepal Government. However, the table
below presents the major shareholders of the Nepal Stock Exchange and
its ownership in percentage.
S.No Shareholders Share ownership
(%)
1. Government of 58.66
Nepal
2. Nepal Rastra Bank 14.6
3. Employees 10.00
Provident Fund
4. Other shareholders 16.74
BOARD OF DIRECTORS OF NEPAL STOCK
EXCHANGE
• The Board of Directors (BOD) Of Nepal Stock Exchange (NEPSE) ,
constitutes of members representing different sectors as per Securities Act
2006. At Present the BOD constitutes 2 members including a chairman
from Nepal government , 2 members from Nepal Rastra Bank , 1 from
Rastriya Banjiya Bank. Moreover , one member will be nominated by
BOD as an expert in capital market. General Manager of NEPSE will be
Serve As a director on the BOD.
• The current Chairman of NEPSE is Shobhakant Poudel . He was appointed
to this position in December 2023 by Finance Minister Dr. Prakash Sharan
Mahat.
• The Chief executive Officer (CEO) of NEPSE is Krishna Bahadur Karki.
He was appointed to this role in February 2022 after the resignation of the
previous CEO, Chandra Singh saud.
SECURITIES TRADING AT NEPSE

• As of January 2024, 249 companies are listed on the exchange, from

different Industry Sectors like BFIs, Hydro-Power, Life and Non-Life
Insurance, Hotels and Tourism, etc. The primary securities traded on
NEPSE includes: Equity shares, Preference shares, Debenture and Bonds,
Mutual Funds, Government bonds.
• These securities are traded through brokers registered with NEPSE ,and
the exchange operates on an electronic trading system
THE COMPANY TRADING ON NEPSE CAN BE
CLASSIFIES INTO VARIOUS SECTORS:
• Commercial Banks
• Development Banks
• Finance companies
• Microfinances
• Life insurance business
• Non-life Insurance business
• Hydropower
• Trading
• Manufacturing & Processing
• Investment
• Mutual Funds
• Corporate Debentures
• Others (Telecommunication,
Reinsurance)