A delegation of senior officials from the Securities Board of Nepal and the Ministry of Law, Justice and Parliamentary Affairs, Nepal, have been on a week-long working tour in Mumbai. They visited the Multi Commodity Exchange as part of their study tour on the functioning of the commodity derivatives market in an effort to set up a regulatory regime and to launch commodity derivative markets in Nepal.

The Nepal Government recently entrusted SEBON with the responsibility of regulating their country’s commodity derivatives market and it intends to acquire knowledge on various regulatory aspects connected to commodity derivatives during their study tour to India.

Mrugank Paranjape, Managing Director, MCX, said the subcontinent’s commodity markets have a lot of potential for growth and the derivatives market for commodities is a great enabler in harnessing their potential for the benefit of their stakeholders. However, he said to achieve this, it is important to formulate and execute enabling and robust guidelines at the regulatory and market level.

Paristha Nath Poudyal, Executive Director, SEBON, said it was an enlightening experience to learn about market development and regulation of commodity markets and to reap the synergies between Nepal and India’s commodity sector. It would facilitate creation of a proper regulatory framework for orderly growth and development of Nepal’s commodity market, he said. The delegation will also interact with senior officials from the Securities and Exchange Board of India and the Reserve Bank of India.

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