KATHMANDU, SEP 15 -
Amid growing concerns about the business modality of commodities exchanges, the government has taken the first major step towards regulating the commodities market, with the High Level Financial Sector Coordination Committee on Friday directing the Securities Board of Nepal (Sebon) to submit a draft regulation on Sunday.
A meeting of the committee on Friday also asked Sebon to submit a report on activities taking place in the commodities market and other proposals at the next meeting on September 19.
Stakeholders had long been demanding a regulation, but the government seems to have taken the matter seriously after anomalies, including illegal activities like transactions of foreign exchange without approval of the central bank, were reported. A Sebon official said preparing the draft within Saturday was a challenging job, but they would do their bit to meet the deadline.
The committee has also directed Sebon to submit the study report that unearthed anomalies in the commodities market at the earliest. The study found that about 80 percent of investors have lost investment in the sector.
Speculative trading of commodities like precious metals, industrial metals, petroleum products and agricultural goods, among others, has been the highlight of the domestic commodities exchanges. These exchanges have been trading in gold and petroleum based on price speculation in the international market. It has only been six years since such exchanges opened shop in Nepal. Within these few short years, six exchanges have been established, and more than a dozen are in the pipeline.
Source: http://www.ekantipur.com/2012/09/15/business/commodities-market--sebon-asked-to-prepare-guideline/360271/
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