The Supreme Court has rejected a writ petition aiming to prevent the issuance of new stock exchange licenses, allowing the establishment of further stock exchanges in Nepal. A constitutional bench consisting of Chief Justice Prakashman Singh Raut and Justices Sapana Pradhan Malla, Kumar Regmi, Hari Prasad Phuyal, and Dr. Manoj Kumar Sharma delivered the ruling on Wednesday, dismissing the petition brought forth by advocate Krishna Bahadur Thapa and others.
The petition contended that the Securities Board of Nepal (SEBON) exhibited policy discrepancies in granting stock exchange licenses. Thapa sought the court’s intervention to suspend the licensing procedure, naming SEBON, the Ministry of Finance, and the Office of the Prime Minister and Council of Ministers as respondents. With the court’s ruling, the licensing process will continue without any legal impediments.
Previously, SEBON had called for applications for new stock exchange licenses, drawing interest from three contenders: Himalayan Stock Exchange, Annapurna Stock Exchange, and National Stock Exchange. Himalayan Stock Exchange is supported by notable Nepali business groups, while National Stock Exchange receives substantial investment from Non-Resident Nepalis (NRNs). Similarly, Annapurna Stock Exchange is also endorsed by Nepali entrepreneurs. According to regulatory guidelines, any new stock exchange is required to have a minimum paid-up capital of Rs. 3 Arba and allocate 30% of its shares to the public.
