Section 5: Functions, duties and powers of the Board

The functions, duties and powers of the Board shall be as follows:-

(a) To offer advice, as per necessity, to the Government of Nepal on matters incidental to the development of the capital market,

(b) To register the securities of any corporate body established with the authority to make a public issuance of its securities,

(c) To regulate and systematise the issue, transfer, sale and exchange of registered securities,

(d) To grant permission to any corporate body which is desirous of operating a stock exchange to operate the stock exchange subject to this Act or the Rules and by-laws framed under this Act,

(e) To regulate and monitor the activities of the stock exchange;

(f) To inspect whether or not any stock exchange is executing its activities in accordance with this Act or the Rules and by-laws framed under this Act and to suspend or revoke the license of such a stock exchange if it is found that the same has not been done,

(g) To issue a license to companies or institutions which are desirous of carrying on the securities business subject to this Act or the Rules and By-laws framed under this Act,

(h) To regulate and monitor the activities of securities business person,

(i) To classify securities business persons and fix their standards according to their functions and capability by fulfilling such procedures as prescribed,

(j) To grant permission to operate collective investment schemes and investment fund programs and to regulate and monitor the same,

(k) To approve By-laws of stock exchanges and those bodies which are related to securities business and engaged in securities transactions, and to issue orders to stock exchanges and those bodies which are related to securities business and engaged in securities transactions to make necessary amendment in their Bye-laws with a view to making necessary provisions concerning the development of the capital market and protecting the interests of investors in securities,

(l) To systematise the clearance of accounts related to securities transactions,

(m) To supervise whether or not security business persons have maintained such conduct as prescribed in this Act or the Rules, By-laws and Directives framed under this Act while carrying on securities business, and suspend or revoke the license to carry on securities business where any securities business person is not found to have maintained such conduct,

(n) To make or cause to be made, such arrangements as may be necessary to regulate the volume of securities and the mode of securities transactions for the promotion, development and healthy operation of stock exchanges,

(o) To make such arrangements as may be necessary to prevent insider trading or any other offence relating to securities transactions as referred to in Chapter 9 for the protection of the interests of investors in securities,

(p) To review, or cause to be reviewed, financial statements submitted by corporate bodies issuing securities and securities business persons, and give such directives to the concerned corporate bodies as it deems necessary in this connection,

(q) To regulate and make transparent the act of acquiring the ownership of a company, thereby gaining control over its

(r) To maintain coordination and exchange cooperation with the concerned agencies in order to supervise and regulate matters concerning securities or company affairs,

(s) To perform or cause to be performed such other functions as may be necessary in relation to securities and the development of capital market.