Section 116: Power to frame Rules

1) The Board may, in order to implement the objectives of this Act, frame necessary Rules with the approval of the Government of Nepal,

2) Without prejudice to the generality of the power conferred by sub-section (1), such Rules may, in particular, provide contain the following matters:-

(a) Securities registration and permission for issuance,

(b) Issue of a license for stock exchanges,

(c) Issue of a license for securities business,

(d) Operation of collective investment schemes,

(e) Terms and conditions of the service of the employees of the Board,

(f) Maintenance of financial operations and accounts of the Board,

(g) Operation of the compensation fund,

(h) Financial source required to be maintained by securities business person in relation to the operation of the securities business,

(i) Accounts and records of money paid by customers for the purchase of securities,

(j) Suspension of listing, delisting or transfer of securities,

(k) Other necessary provisions to regulate and manage the activities of the stock exchange and persons involved in the securities business by regulating the issue, purchase, sale and exchange of securities and to protect the interest of investors for the development of the capital market,

(l) Taking over the ownership by purchasing shares in a lump sum or at several times with the intent to control the management of companies.