NEPSE becomes a profit making company

With the approval from the office of the company registrar, Nepal Stock Exchange (NEPSE), the only share market in the country, has been transformed into a profit making institution.

The decision to transform the NEPSE as a profit making company was taken during the 26th general assembly held recently.

With this decision, the organizational and financial structure of the company has also been reviewed. The board members have been dropped down to seven from nine. The total capital of the company will be raised to Rs 160 million from Rs 50 million while running capital will go up from Rs 30.5 million to Rs 50 million. To manage the increasing capital stocks, NEPSE said a Central Deposit System (CDS) will be created.

The reformed NEPSE board of directors includes representatives from government of Nepal, Nepal Rastra Bank and Nepal Industrial Development Corporation (NIDC). The representation from NEPSE and brokers has been cancelled citing the conflict of interest between the two sides.

NEPSE said the changes have been adopted in its effort to strengthen the role of stock exchange more effectively and make its functions dynamic, transparent and efficient, a statement issued by the NEPSE said. nepalnews.com ia June 24 08

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