If an application is received from any organized organization for the permission to operate the securities market in accordance with Rule 12, the Board shall, subject to sub-rule (2) and after conducting the necessary investigation, if deemed appropriate, grant such organized organization a license to operate the securities market in the format as per Schedule-3.
(2) The board will grant permission to such organized organization to operate the securities market only if the organized organization applying for permission to operate the securities market fulfills the following conditions:-
(a) Incorporated so as to limit the liability of shareholders or members.
(b) It is clearly mentioned in the regulations or statutes of the organized organization that the profit will not be distributed to the shareholders or members.
(c) Except for the Government of Nepal, Nepal Rastra Bank or other organized organizations designated by the Government of Nepal, there is a provision that only 11 securities traders can be members or shareholders.
(d) Member of the board of directors and chief executive of an organized organization having gained experience in securities transactions or related fields.
(e) The financial status of the organized organization is strong and satisfactory.
(f) There is proper provision in the rules or regulations of the organized organization regarding the following matters:-