KATHMANDU, Oct 4: Experts have called upon Securities Board of Nepal (Sebon) to immediately come up with a by-law to regulate commodities and derivatives market, where transactions worth millions of rupees take place held every day without monitoring and supervision of government agencies.
Until the regulation is promulgated, experts urged commodities exchanges to prepare a code of conduct so that they can regulate themselves and ensure that the investment of the general public are safe.
"Sebon (the securities market regulatory body) should immediately step on a clause in the Securities Act and immediately come up with a regulation to govern the securities and derivatives market," Krishna Bahadur Manandhar, former deputy governor of Nepal Rastra Bank, said at an interaction on ´Problems and Challenges in Regulating Commodities and Derivatives Market´ held in Kathmandu on Thursday.
Lending voice to Manandhar´s call, Rameshore Khanal, Primer Minister Baburam Bhattarai´s advisor, said, "Sebon should introduce such law before Dashain (in the month of October)."
Khanal, also a former finance secretary, stressed the need for including provision that promotes agricultural commodities and minerals.
"One of the reasons for the need of commodities exchanges in the country is to promote futures trade of agricultural commodities so that farmers can get better price for their products," he said. "Besides minerals like limestone also have a promising future and should be listed on the exchanges."
Sebon Chairman Baburam Shrestha, meanwhile, said that the final draft of the regulation on commodities and securities market has already been forwarded to the Ministry of Finance for approval.