Securities Board of Nepal


Download Securities Board of Nepal


Preview text

Securities Board of Nepal
Jawalakhel, Lalitpur, Nepal 9 October 2020
Published on the occasion of World Investor Week 2020

INVESTORS’ HANDBOOK ON SECURITIES MARKETS AND COMMODITY
DERIVATIVES MARKETS
Securities Board of Nepal (SEBON) Jawalakhel, Lalitpur, Nepal 9 October 2020
Published on the occasion of World Investor Week 2020

Investors’ Handbook
III

Investors’ Handbook

Editorial
The Nepalese securities markets is being modernised due to some structural changes in the recent years. The fullfledged dematerialised transaction of securities, the introduction of ASBA, C-ASBA and Meroshare system in the primary market enabling the applicants from 77 districts to access the service through more than 2500 BFIs as service providers, branch expansion of merchant bankers and stockbrokers outside of Kathmandu valley and adoption of on-line trading system have made Nepalese securities markets techno-friendly, investment friendly and countrywide resulting increased attraction of public towards the securities markets in recent days.
Low level of participation of institutional investors in the markets, lack of diversified instruments and low level of understanding and awareness in securities markets continues to be a cause of concern. Investors and even students tend to use thumb rules or seek advice from friends, market intermediaries and relatives, which are often poor approximations compared to those that follow from a scientific analysis. They will tend to make bad choices, contribute insufficiently, begin saving late, stay away from modern finance, or fall prey to fraud or mis-selling of financial instruments. If they get bad advice, the outcomes will be poor, and they will lose faith in the market system.
Taking note of aforementioned facts, Securities Board of Nepal (SEBON) has been focusing on the investor education and awareness building programme

in securities markets and commodity derivatives markets in order to empower and protect the interest of general investors at large. As a continuation of this, World Investor Week (WIW) 2020 Organising Committee is pleased to bring out “Investors’ Handbook on Securities Markets and Commodity Derivatives Markets”. The purpose of the handbook is to provide the basics of securities markets and commodity derivatives markets to the students of Schools and Colleges at early age and investors at large to enable enhancing their understanding and making informed investment decisions of their hard-earned incomes and savings.
The Handbook is a compilation of the basic information about financial markets, securities markets, commodity derivatives markets, SEBON and its functions, IPO process, shareholders’ rights, primary and secondary markets, investment instruments, services provided market participants, most useful terms of the markets, and tips for investment.
We request students and investors to use this handbook as guidance for understanding of securities markets and making better investment decision.
We would like to thank the Chairman of SEBON and Management of SEBON for providing us the opportunity in bringing out this publication. We are also thankful for entrusting us with the task of organising the WIW 2020.
Finally, we welcome valuable comments and suggestions in making this publication more useful and effective in the future.

V

Investors’ Handbook
WIW 2020 Organising Committee
Dr Nabaraj Adhikari, Deputy Executive Director and Coordinator Deepa Dahal, Deputy Executive Director and Member Anuj Kumar Rimal, Acting Director and Member Yam Nath Aryal, Assistant Director and Member Sanu Khadka, Assistant Director and Member (Invitee Member)
VI

Investors’ Handbook

ABBREVIATIONS

SEBON AMC
SBAN
MBAN
NEPSE BTI BO NOTS
CBI
CDSC
CIS
IPF DP FAQs F&O GoN ICAN
IPO ISIN
KIM
MBs MFs NAV PSU QIB

Securities Board of Nepal Asset Management Company Stockbroker Association of Nepal Merchant Banker Association of Nepal Nepal Stock Exchange Ltd. Banker to the Issue Beneficiary Owner NEPSE Online Trading System Ltd. Central Bureau of Investigation CDS and Clearing Ltd. (Central Depository Services) Collective Investment Scheme Investor Protection Fund Depository Participant Frequently Asked Questions Futures and Options Government of Nepal Institute of Chartered Accountants of Nepal Initial Public Offering International Securities Identification Number Key Information Memorandum Merchant Bankers Mutual Funds Net Asset Value Public Sector Undertaking Qualified Institutional Buyer

RII SRO CGT STT UCC UIN
VCF DMAT
WIW DIS SASRF
ANNA
AFIE
OECD
APEC
US SEC
ASIC
SEBI
FSA
OJK

Retail Individual Investor Self Regulatory Organisation Capital Gain Tax Securities Transaction Tax Unique Client Code Unique Identification Number Venture Capital Fund Dematerialisation (of securities) World Investors Week Debit Instruction Slip South Asian Securities Regulators Forum Associations of National Numbering Agencies Asia Forum for Investor Education Organisation for Economic Cooperation and Development Asia-Pacific Economic Cooperation United States Securities and Exchange Commission Australian Securities & Investment Commission Securities and Exchange Board of India Financial Services Agency, Japan Otoritas Jasa Keuangan, Indonesia

VII

Preparing to load PDF file. please wait...

0 of 0
100%
Securities Board of Nepal