Section 3: Establishment of Board

1) There shall be established a Board by the name of Nepal Securities Board in order to regulate and manage the activities of the securities markets and persons involved in the securities business by regulating the issue, purchase, sale and exchange of securities in order to develop the capital market and protect the interests of investors in securities.

2) The Board to be established under sub-section (1) shall consist of the members as follows:-

(a) A person appointed by the Government of Nepal                                                                      -Chairperson

(b) Joint Secretary, Ministry of Finance                                                                                               -Member

(c) Joint Secretary, Ministry of Law, Justice and Parliamentary Affairs                                        -Member

(d) Representative, Nepal Rastra Bank                                                                                                 -Member

(e) Representative, Institute of Chartered Accountants of Nepal                                                     -Member

(f) Representative, Federation of NepaleseChambers of Commerce and Industries                   -Member
(g) A person nominated by the Government of Nepal from amongst the experts who have obtained at least a master’s degree in economics, management, finance, commerce or law from a recognised university and gained at least seven years of experience in stock exchange, management, capital market development, finance and economic sector -Member

3) The concerned organisation shall, in nominating its representative pursuant to clauses (e) and (f) of sub-section (2), nominate a person who has obtained at least a bachelor’s degree and gained at least seven years of experience in accounts, industry, commerce, finance, banking, economics or law matters.

4) The tenure of office of the member nominated pursuant to clause (g) of sub-section (2) shall be three years.

5) No act or proceeding of the Board shall be affected merely on the reason of any vacancy in office of any member.

6) An officer employee designated by the Board shall act as the Secretary of the Board.

7) If the Board thinks it necessary, it may invite any native or foreign expert or adviser to attend its meeting as an observer.

8) The central office of the Board shall be situated in Kathmandu Valley, and the Board may, as required, open its branch or contact office within or outside of Nepal.