History of Stock Market in the Nepal

•      Stock market began with the issue of shares by Biratnagar Jute Mills Ltd in 1937.

•      Security Marketing Centre (SMC) was established in April 1977 under Industrial Policy, 1974 with the objective of facilitating the transaction of government development bonds and corporate securities.

•      SMC started secondary trading of securities in November 1981 which restricted to government bonds.

•      Security Exchange Act, 1983 was enacted in 1983.

•      The then SMC was converted into Securities Exchange Centre (SEC) in 1984. SEC opened its floor for corporate share trading in November 1984.

•      The first amendment in Securities Exchange Act, 1983 in 1993 paved the way for the restructuring of stock market in Nepal, which led to establish Securities Board of Nepal (SEBON) in 1993 with a mandate to regulate and develop the stock market.

•      The first amendment in the Act also led to convert the then SEC into NEPSE, a full-fledged open-out-cry trading system with the induction of stock brokers in January 13, 1994.