Chapter-2

Chapter-2
Provisions Relating to the Securities Board
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3. Functions, Duties and Powers of the Board : The Board shall have the
following functions, duties and powers in addition to the functions and
duties provided in Section 5 of the Act :-
(a) To execute or cause to execute the policy of Government
of Nepal in relation to the Transaction of Securities.
(b) To inspect or supervise the working plan arrangement of
the Stock Exchange and Securities Entrepreneur for
regularising and systematising the Transaction of
Securities.
(c) To prescribe the terms and conditions to be followed by the
Securities Entrepreneur while issuing and managing the
sales of the Securities.
(d) To prescribe the terms and conditions to be followed by
Stock Exchange and Securities Entrepreneur while carrying
out the Transaction of Securities.
(e) To approve the Bye-Laws of the Stock Exchange.
(f) To approve the number of employee needed to the Board
and appoint.
(g) To obtain the information, data or particulars of the
Corporate Body which have listed their Securities as per
necessity and to arrange the system of viewing, if the
investor desires to see it.

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Amended by Second Amendment.
(h) To make necessary arrangement for the operation of the
Stock Exchange in healthy, competitive, regular and
systematic manner.
4. Allowances and Facilities: (1) The meeting allowance to be obtained
by each member who participates in the meeting of the Board shall be as
prescribed by Government of Nepal.
(2) In case any member has to travel in regard to the act of the
Board he shall receive the daily and travel allowances and other
facilities as prescribed by Government of Nepal.
5. Functions, Duties and Powers of the Chairman: The functions, duties
and powers of the Chairman shall be as follows:-
(a) To act as the administrative chief of the Board.
(b) To operate and cause to operate in his direction and
control the daily businesses to be performed by the Board.
(c) To supervise and control the employee working in the
Board.
(d) To cause to call the meeting of the Board and to chair the
meeting.
(e) To cast vote in case of tie in the meeting of the Board.
(f) To execute or cause to execute the decisions made by the
Board.
(g) To carry out or cause to carry out the other functions
entrusted by Government of Nepal or the Board.
(h) To carry out other necessary functions in relation to
operate the functions of the Board in systematic manner
remaining under the Act, these Rules and the decisions
made by the Board.
6. Terms and Conditions, and Facilities of the Chairman: (1) The
monthly remuneration of the Chairman and allowances and other
facilities entitled to obtain by him/her shall be as prescribed by
Government of Nepal.
(2) After termination the tenure of service of the Chairman
Government of Nepal may reappoint or designate him/her.
(3) The Chairman shall be entitled to obtain the facility of leave
as obtained by the employee.
7. Provisions Relating to the Employee of the Board: (1) There shall be
employee in the Board in number as determined by the Board.
(2) The appointment, transfer, promotion remuneration, facility
and other terms and conditions of the employee to be appointed pursuant
to sub-rule (1) 8
shall be as prescribed in the Bye-Laws.
8. Government of Nepal may Provide Grant to the Board: Government
of Nepal may provide an amount to the Board as grant deemed
necessary for the operation of the functions of the Board.
9. Fund of the Board: The Board shall have its separate fund and the fund
shall consist the following amounts:-
(a) The amount of aid or grant obtained from Government of
Nepal, Nepal Rastra Bank and other native and
international organization.
(b) The amount received from registration of Securities,
(c) The amount received while granting the license to operate
Stock Exchange and renewal fee.

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Amended by Second Amendment.
(d) The amount received by selling the property of the Board
and mobilising the sources of the Board.
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(e) The amount deposited in the Board among the amount of
transaction fee received by the Stock Exchange.
10 (e1) The amount paid by the Securities Entrepreneur for
registration.
(f) The amount received by any other sources.
10. Arrangement of the Revolving Fund : (1) The Board shall establish a
revolving fund and each year the amount as prescribed by the Board
shall be deposited in the fund.
(2)The Board may deposit the amount deposited in the revolving
fund in the fix account and invest it in the securities issued by
Government of Nepal.
(3) The amount except the earning from the amount deposited in
the revolving fund shall not be expensed.
11. Account and Audit of the Board: (1) The account of the income and
expenditure of the Board shall be maintained in a manner and a way as
prescribed by the Board.
(2) The audit of the account of the Board shall be done by the
Department of Auditor General or by the auditor as appointed by the
Auditor General.