The Nepal Stock Exchange (NEPSE) is the only
stock exchange
A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...
of Nepal. the
market capitalization
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
Market capitalization is equal to the market price per common share multiplied by t ...
of the companies listed on NEPSE was approximately .
The basic objective of NEPSE is to impart free marketability and liquidity to the government and corporate securities by facilitating transactions in its
trading floor
Open outcry is a method of communication between professionals on a stock exchange or futures exchange, typically on a trading floor. It involves shouting and the use of hand signals to transfer information primarily about buy and sell orde ...
through member, market intermediaries, such as broker,
market maker
A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the ''bid–ask spread'', or ''turn.'' The benefit to the firm is that it ...
s etc. NEPSE opened its trading floor on 13 January 1994. 212 companies are listed on the exchange,
which includes commercial banks, hydro-power companies, insurance companies, and finance companies among others. The Exchange has 50 registered brokers
History
The history of
securities market
Security market is a component of the wider financial market where securities can be bought and sold between subjects of the economy, on the basis of demand and supply. Security markets encompasses stock markets, bond markets and derivatives mar ...
began with the flotation of shares by Biratnagar Jute Mills Ltd. and Nepal Bank Ltd. in 1937. Introduction of the Company Act in 1964, the first issuance of
Government Bond
A government bond or sovereign bond is a form of bond issued by a government to support public spending. It generally includes a commitment to pay periodic interest, called coupon payments'','' and to repay the face value on the maturity date ...
in 1964 and the establishment of Securities Exchange Center Ltd. in 1976 were other significant development relating to capital markets.
Securities Exchange Center was established with the objective of facilitating and promoting the growth of capital markets. Before conversion into stock exchange it was the only capital markets institution undertaking the job of brokering, underwriting, managing public issue, market making for government bonds, and other
financial services
Financial services are the Service (economics), economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, acco ...
. Nepal Government, under a program initiated to reform capital markets, converted Securities Exchange Center into Nepal Stock Exchange in 1993.
Ownership structure and board
The current paid-up capital of NEPSE is NPR 500,000,000 (approximately US$4.2 million in October 2020). The following table shows the percentage of shareholdings by the respective shareholders on the capital structure:
Indices
The NEPSE Index is the primary all-equity-market index of the Nepal Stock Exchange.
References
External links
*
{{World Federation of Exchanges
1993 establishments in Nepal
Buildings and structures in Kathmandu
Stock Exchange
A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...
Stock exchanges in Asia