The historical development of Nepal’s stock market, known as NEPSE, is a captivating journey that commenced with the implementation of the Company Act B.S. 1993, serving as the foundation for the country’s modern stock exchange.
The inception of NEPSE can be traced back to B.S. 1993, when Biratnagar Jute Mill issued shares, marking its initial entry into the stock market. This historical mill holds not only economic significance but also played a pivotal role in shaping Nepal’s political landscape, with prominent leaders like B.P. Koirala, Girija Prasad Koirala, and Man Mohan Adhikari emerging from this industry.
Watch on Youtube https://www.youtube.com/embed/xBDp3sLfXPA
Subsequent years saw significant milestones in the stock market’s progression. In B.S. 1994, Nepal Bank issued shares, marking the dawn of institutional banking services. Later in B.S. 2018, the commencement of government bond trading expanded the market further.
To facilitate share trading, the Security Buying and Selling Center was established in B.S. 2033, providing a dedicated platform for investors. Eventually, this center evolved into Nepal Stock Exchange Limited (NEPSE) in B.S. 2050, formally launching the stock exchange.
Advancements in technology brought about transformative changes. In B.S. 2064, NEPSE transitioned to an automated computerized trading system, eliminating the need for physical trading floors and enabling investors to conduct transactions from remote locations.
Further progress came with the introduction of the Over-The-Counter (OTC) market in B.S. 2065, facilitating the trading of company shares and bonds not listed on NEPSE.
In B.S. 2067, a groundbreaking development occurred with the establishment of CDSC (CDS and Clearing Ltd.), initiating the era of dematerialized shares and eliminating paper transactions.
To provide investors with insightful assessments, credit rating services commenced in B.S. 2068, offering ratings based on the fundamental and financial background of companies.
Continuing to evolve, NEPSE implemented the ASBA system in B.S. 2073, streamlining Initial Public Offerings (IPOs) and enabling seamless share trading by linking bank accounts with demat accounts.
Enhancing trading convenience, the NEPSE Automated Trading System (NETS) was introduced in B.S. 2075, empowering investors to conduct transactions from the comfort of their homes.
In B.S. 2077, the IPO process saw improvements with the adoption of the book-building system, facilitating a more efficient offering process.
Moreover, in the same year, the Rafsaf system T+2 was introduced, further enhancing transaction efficiency.
As Nepal’s stock market continues to mature, there are optimistic expectations that the Nepal Securities Board will introduce innovative features like intra-day trading, further solidifying the market’s position as a vital aspect of the country’s financial landscape.
The historical progression of NEPSE demonstrates its growth, adaptability to technological advancements, and significant contributions to Nepal’s financial and economic development.
0 コメント