The Presentation Related to NEPSE market, analyzing two decades of NEPSE over growth and development.

1. SECURITIES MARKET IN NEPAL
OBSERVING DEVELOPMENT, GROWTH
AND PERFORMANCE IN NEPSE

2. Growth & Performance Of
Securities Market In Nepal

3. MEMBERS:
SUJATA BHATTA
GEETA BHATTRAI
DEEPA THAPA
ASHIM THAPA
ANU GYANWALI
RUBIKA THAPA
BIMLA ALE
RICHA POUDEL
SANDHYA CHHETTRI
ABHISEK GYANWALI

4. Introduction of Securities Market
 Security market is a place where buying and selling of securities takes place in an organized way by
licensed stock brokers.
 Security market provides an effective way of procuring long-term funds by issuing shares and
debentures or bonds for corporate enterprises and government and provides an investment
opportunity for individuals and institutions
 Securities Board of Nepal (SEBON) as an apex regulator of Securities Markets in Nepal has
also regulated and systematized the issue, transfer, sale and exchange of registered securities.

5. Functions Provided By Securities Market
1.Economic Barometer
2.Pricing of Securities
3.Safety of Transactions
4.Contribution To Economic Growth
5.Spreading Economic Cult
6.Providing Scope for Speculation

6. Historical Perspective of Nepalese Securities Market
• 1937 securities market began with the floatation of shares by Biratnagar Jute Mills Ltd.
and Nepal Bank Ltd.
• 1964 Introduction of the Company Act 1964
The first issuance of Government Bond
• 1974 HMG announced the industrial Policy and establishment of Securities Marketing
Center (SMC) was done.
• 1976 the establishment of Securities Exchange Center Ltd.

7. Historical Perspective of Nepalese Securities Market
• 1993 Nepal Government, reform capital markets converted Securities Exchange Center into
Nepal Stock Exchange NEPSE, is a non-profit organization, operating under Securities
Exchange Act, 1983. The basic objective of NEPSE is to impart free marketability and
liquidity to the government and corporate securities by facilitating transactions in its
trading floor through member, market intermediaries, such as broker, market makers etc.
• 13th January 1994 NEPSE opened its trading floor on. At present, it has 40 members/
intermediaries comprising of stockbrokers (27),issue and sales managers (10), security
dealers (2) and market maker (1)

8. Growth in size
This section will help to know the growth in size of NEPSE market by identifying:
1. Number of listed company
Securities Exchange Act, 1983, Section 8, prohibits securities trading without
listing to Nepal Stock Exchange Ltd.
2. Stock Market Capitalization
> Market Capitalization refers to the total market value of all of a
company outstanding shares.
> Market capitalization is calculated by multiplying a company's
shares outstanding by the current market price of one share.

9. 66
79
89
95
101
107 110
115
96
108
114
125
134 135
142
159
176
209
216
230
237
0
50
100
150
200
250
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
No of listed company
(1994-2014)

10. Year Growth Rate in
No. of Company
1994-1999 10.14%
1999-2004 1.27%
2004-2009 6.87%
2009-2014 8.31%
Analysis of Growth Rate of Number of Listed Companies
Stock Market Capital

11. 13872 12963 12295 12698 14289 23508
43123.3 46349.4 34704 35240 41425
61365.9
96763.8
186301.3
366247.6
512939.1
376871.4
323484.3
368262.1
514492.1
1057165.8
0
200000
400000
600000
800000
1000000
1200000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Stock Market Capitalization
1994-2014 (In Million)
Stock Market Capitalization

12. Year Growth Rate
1994-1999 11.12%
1999-2004 11.99%
2004-2009 65.40%
2009-2014 15.56%
Analysis of Stock Market Capitalization

13. Growth In Liquidity
To identify the growth in liquidity in NEPSE market we have to go through Annual
Value Traded in the market at different years. The annual value traded(annual
turnover ratio) is another measure of liquidity of stock market.
A high turnover ratio indicates low transaction cost and relative ease in buying and
selling of securities.

14. 441.6
1054.3
209.9
416.2
202.6 73.8
283.7 128 80.9 64.7
255 198 327.9
1432.1
2648.2
1475.2
586.4
913
1258.5
1786.6
7725.6
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Annual Value Traded
1994-2014 (In mILLION)
Annual Value Yield

15. Year Growth Rate of
Annual Value Traded
1994-1999 -30.08%
1999-2004 28.19%
2004-2009 42.00%
2009-2014 39.25%
Analysis of Annual Value Traded

16. Growth In Market Price
To identify the growth in market price in NEPSE market we have to go through
NEPSE Index of the market at different years. The NEPSE index indicates the
increase or decrease of total market capitalization of companies’ transactions
that are listed in Nepal Stock Exchange. This indicates the increase or decrease
of overall market; therefore it has significant importance to investors.
NEPSE Index = (Total Market Capitalization of all the Companies
Listed/Total Base Year’s Market Capitalization) *100

17. 226
195.5 185.6 176.3 163.4
216.9
360.7 348.4
227.5
204.9 222
286.7
386.8
683.9
963.4
749.1
477.7
362.9
389.7
518.3
1036.1
0
200
400
600
800
1000
1200
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
NEPSE Index
1994-2014
NEPSE Index

18. Year Growth Rate of
NEPSE Index
1994-1999 -0.819%
1999-2004 0.46%
2004-2009 27.53%
2009-2014 6.70%
Analysis of NEPSE Index

19. 1994-
1999
1999-
2004
2004-2009 2009-
2014
Number of
listed
company
10.14% 1.27% 6.87% 8.31%
Market
Capitalization
11.12% 11.99
%
65.40% 15.56%
Value Traded -30.08% 28.19
%
42.00% 39.25%
NEPSE Index -0.819% 0.46% 27.53% 6.70%
Final Analysis of the Report.
In Comparison to Growth Rate

20. -40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
1994-1999 1999-2004 2004-2009 2009-2014
Final Analysis of the Report.
Number of listed company Market Capitalization Value Traded NEPSE Index

21. Gratitude for your Presence