Tulsi Gautam, manager of EPF informed that the discussion is going on regarding the opening of the stock dealer company. The Fund has already discussed the project at various stages, however, the pandemic halted the process. Given that the lockdown is gradually being released, the institution is planning to forward the project with utmost priority, said Gautam.
Moreover, the Fund is also looking for a suitable public company to partner the project. The Fund is planning to open the company under the partnership of some public companies and has discussed the matter with a few of them. EPS believes that a partnership with a good company will help increase the paid-up capital of the upcoming company. EPF is planning to establish a bigger stock dealer company than CIT.
The domestic stock market has a market capitalization of Rs 1600 billion. With a daily turnover of up to Rs 4 billion, a single dealer may be proven inefficient. Thus, the Securities Board of Nepal (SEBON) has planned to open at least four big dealer companies. Then after, it is planning to add some small dealers as well.
SEBON is planning to first give approval to CIT. After analyzing its work and as per market demands, it will approve other dealer companies.
