(1) After having received the application
in accordance to Rule 28, the Board shall, upon taking the necessary
inquiry pursuant to Section 19 of the Act, if deemed necessary to
register such Corporate Body as Securities Entrepreneur, having register
such Corporate Body within thirty days from the date of receipt of the
application, grant the Certificate of Securities Entrepreneur as to carry
out any or more than one of the following functions:-
(a) To purchase, sale or exchange the Securities in the name
of customer.
(b) To carry out the Transaction of any one or more than one
Securities among the treasury bill issued by Government
of Nepal or issued in the Security of Government of
Nepal or mutual fund issued publicly or unit or the
ordinary shares of at least three Corporate Bodies or other
Securities by purchasing or selling in its name or from its
name by the objective of providing liquidity in those
Securities.
50 Amended by Second Amendment.
(c) To buy some or all newly issued Securities in its own
name with the object of selling through the Stock
Exchange Securities issued either through public issue
method or circulation method by a Corporate Body, to
carry out the Transaction of Securities through Broker in
the name of customer or its own by concluding
investment arrangement contract with customer with the
objective of making investment arrangement.
(d) To provide the pre issue and post issue services to
arrange the sales management of Securities to be newly
issued either through public issue method or circulation
method by a Corporate Body and to under write the
issued Securities.
(e) To register the newly issued shares, to take responsibility
relating to cancelling the name and transfer into the
record and transfer of the securities, to act as a trustee of
the securities, to provide concealing service relating to
the securities as Entrepreneur, to carry out other functions
prescribed by the Board by taking approval of
Government of Nepal and to carry out other functions
relating to the Securities.
(2) While examining the application pursuant to sub-rule (1) if
needed any particulars or document in addition or if deemed necessary
to cause to omit or submit any matter in the application the Board shall
give an order to the applicant and only after the fulfillment of the acts as
per the order given in such manner the Board shall take the decision as
to register the name of applicant as Securities Entrepreneur.
(3) While examining pursuant to sub-rule (1), in case it can not be
registered as Securities Entrepreneur the Board shall give the notice
thereof with reason within Thirty days from receipt of application.
(4) Notwithstanding anything mentioned in sub-rule (1), the
certificate as to carry out other functions except the function of Clause
(a) shall not be granted to the Securities Entrepreneur who acts as a
Broker.
30. To Take Certificate who is Carrying out the Transaction of
Securities : The person, firm, company or Corporate Body carrying out
the Transaction of Securities by obtaining the membership of Stock
Exchange at the time of commencement of these Rules shall have to
obtain the certificate by registering name into the Board as the Securities
Entrepreneur.