Writ filed in Constitutional Bench against Securities Board

Nov Wed 2022 02:14:43

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Writ filed in Constitutional Bench against Securities Board

Kathmandu. A writ has been registered today in the Constitutional Court, demanding that the provisions of the amendments to the three regulations related to the securities market, which were brought with the purpose of distributing the new securities market, securities brokers and securities traders' permits and licenses by benefiting the individuals of limited business houses, are in direct conflict with the Constitution of Nepal. . Advocate Amrit Kharel, an expert in capital market and securities law, and financial journalist Indra Bahadur Bania registered the said writ in the constitutional bench of the Supreme Court on Wednesday, November 16th.

Government of Nepal, Sub-rules (10, (2) and (3) of Rule 2 of 2079, Sub-rule (10, (2) and (3) of Rule 2), Rule 3, Sub-rule (1) and Rule 8 of Securities Market Operation (Second Amendment) Regulations of 2079 enacted by the Nepal Securities Board and implemented by the Nepal Securities Board (Securities Brokers and Securities Dealers) (Fourth Amendment) Regulations, 2079, Rule 2, Sub-rule (1) of Rule 3 and Securities Dealers (Securities Brokers and Securities Dealers) (Fifth Amendment) Regulations, 2079 as mentioned in Rule 2 and Rule 3 Since the entire legal system is in conflict with the Constitution, the existing Securities Act, 2063, the Companies Act, 2063, the universal principles of securities market regulation and best international practices, the valid principles of justice and the precedent principles propounded by the Supreme Court, since they are declared invalid and null and void from the beginning, the transfer, mandate, prohibition, etc. Remedy has been sought in the writ to issue an appropriate order.

Nepal Stock Exchange Ltd. has opened more than 5.4 million beneficiary accounts from the amendment of the regulations and has been playing the role of protector, guardian, and advocate of the assets of ordinary investors who are investing directly in the stock market. (NEPSE) is reduced to the status quo without even increasing its capital, and by giving a new license of the second stock exchange to some limited business interest groups and business houses, the secondary securities market promoted by the private sector will be more competitive on the basis of capital, technology and manpower. It is mentioned in the writ application.

The existing securities market NEPSE and the securities market that will be promoted from the private sector in the future by giving a new license, as well as two different types of regulations have been set in addition to setting double standards regarding the structure of capital. It has been claimed in the writ petition that it is contrary to the constitution.