CSE hosts workshop for delegation from Nepal
A capital market delegation comprising of representatives from the Nepal Stock Exchange (NEPSE) and 36 stockbroker firms from Nepal recently visited Sri Lanka for a two-day knowledge-sharing workshop hosted by the Colombo Stock Exchange (CSE).
The visit saw the delegation participate in sessions on trading infrastructure, capital market regulation, clearing and settlement and other topics on stock market operations.
Commenting on the visit, Stock Brokers’ Association of Nepal President Priyaraj Regmi stated, “The programme was fantastic and we learned more than we expected. It helps us to implement the Internet-based Automated Online Trading System in NEPSE, improve our services to investors and introduce new avenues, services or instruments in the Nepalese capital market.”
The share trading tradition in Nepal dates back to 1937 with the floatation of shares by Biratnagar Jute Mills Ltd and Nepal Bank Ltd. The introduction of the Company Act in 1964, the first issuance of government bonds in 1964 and the establishment of the Securities Exchange Centre in 1976 are said to be the other significant developments relating to capital markets in the country.
The Securities Exchange Centre was established with an objective of facilitating and promoting the growth of capital markets. Before conversion into a stock exchange, it was the only capital markets institution undertaking the job of brokering, underwriting, managing public issue, market making for government bonds and other financial services.
The Nepal government, under a programme initiated to reform capital markets, converted the Securities Exchange Centre into the Nepal Stock Exchange in 1993, where NEPSE opened its trading floor in1994. At present, NEPSE consists of 50 member brokers and two market makers.
The visit was facilitated as part of an ongoing effort by the CSE to advance cooperation and mutual development with peer exchanges and capital market organisations from around the world. Such an effort has seen the CSE actively engage in a number of Mous with regional exchanges and depositories in the recent past.