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.
There are two departments namely Regulation and Management Department, and Supervision and Research Department in SEBON. Under Regulation and Management Department, there are three divisions namely Regulation Division, Legal & Enforcement Division and Management Division. Likewise, under Supervision and Research Department there are three divisions - Securities Businesspersons' Supervision Division; Capital Market, Central Depository Service & Fund Supervision Division; and Policy, Research & Planning Division. Under each division there are two sections with a total of twelve sections and twenty-five sub-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.
