Securities Board, Nepal was established in May 26, 1993 under the provision of Securities Exchange Act, 1983(first amendment). Since its' establishment, SEBO has been concentrating its efforts to improve the legal and statutory frameworks which are the bases for the healthy development of the capital market. As a part of its' continuous effort to build a sound system, the Securities Exchange Act, 1983 was amended for the second time on Jan 30, 1997. This amendment paved the way for establishing SEBO as an apex regulatory body as it widened the horizon of SEBO by bringing market intermediaries directly under its' jurisdiction and also made it mandatory for the corporate bodies to report to SEBO annually as well as semi-annually regarding their performance. Although the second amendment in the act established direct relationship of SEBO with the market intermediaries and the listed companies, supremacy in its' jurisdiction is yet to be established and clearly recognized.

Objectives

General objectives of SEBO are mentioned here under :

1. To promote and protect the interest of the investors by regulating the issuance, sale and distribution of securities and purchase, sale or exchange of securities.
2. To supervise, look after and monitor the activities of the stock exchange and of corporate bodies carrying on securities business.

3. To render contribution to the development of capital market by making securities transactions fair, healthy, efficient and responsible.

Function

The main functions of SEBO are as follows :

1. To advise HMG on the issues related to development of capital market and the protection of the       investors' interest.
2. To approve stock exchanges for the operation and oversee them for healthy trading of securities.
3. To register and regulate market intermediaries involved in the primary issues as well as in the secondary trading of securities.
4. To regulate public issues of securities including the mutual and trust funds.
5. To monitor and supervise the securities transactions.
6. To conduct researches and studies along the area of capital market.
7. To conduct conferences, workshops, seminars and participate in such programs conducted at regional or international level and join the forum and exchange with outside regulators.

Governing Board

SEBO is governed by a Board, composed of seven members including a chairman. The Chairman is appointed by HMG/N for the tenure of four years. It is the Governments' prerogative to re-appoint the chairman, if felt necessary. Members of the Board include representatives one each from Ministry of Finance, Ministry of Law, Ministry of Industry, Nepal Rastra Bank (The Central Bank), Federation of Nepalese Chamber of Commerce and Industry and Nepal Chartered Accountants' Association. The composition of Board Members is as follows:

Board Members 

Organizational Structure of Securities Board

Staffing

At the end of the fiscal year 2003/2004 SEBO was manned altogether by 24 staffs including executives, officers and supervisory and support staffs.