Introduction

Securities Board of Nepal (SEBON) was established by the Government of Nepal on June 7, 1993 as an apex regulator of Securities Markets. It has been regulating the market under the Securities Act, 2006. The Governing Board of SEBON is composed of seven members including one full time chairman appointed by the Government for tenure of four years. Other members of the Board include joint secretary of Ministry of Finance, joint secretary of Ministry of Law, Justice and Parliamentary Affairs, representative from Nepal Rastra Bank, representative from Institute of Chartered Accountants of Nepal, representative from Federation of Nepalese Chambers of Commerce and Industries, and one member appointed by the Government from amongst the experts pertaining to management of securities market, development of capital market, financial or economic sector.

Division and Department

There are four departments namely Regulation Department, Supervision Department, Commodity market and Research Department and Management & legal Department in SEBON. Under these departments there are Eight divisions namely Securities market and Listed companies Division, Stock Broker Dealer Division, Regulation Division, Legal Division, Policy, Research & Planning Division, Commodities Exchange and Business Person Division, Securities Businesspersons Supervision Division and Management and Finance Division. Under these divisions there are total twenty sections.

The major financial sources of SEBON are the government grant, transaction fee from the stock exchange and registration fee of corporate securities. Other financing sources include registration and renewal of stock exchange and market intermediaries and the income from mobilization of its revolving fund.