Kathmandu, July 20: Prime Minister Balendra Shah has said the government is prioritising entrepreneurship development and job creation through the capital market, describing a vibrant stock market as vital to Nepal’s economic growth.
Speaking during a meeting with capital market stakeholders and regulatory authorities at the Office of the Prime Minister and Council of Ministers on Monday, Prime Minister Shah said the government is committed to creating an investment-friendly environment while maintaining zero tolerance for irregularities.
He urged entrepreneurs and investors to remain confident, saying the government has a clear policy of supporting those engaged in productive economic activities.
During the discussion, representatives of stakeholder organisations proposed a series of legal, policy, institutional and structural reforms aimed at promoting the sustainable development of Nepal’s capital market.
According to participants, key recommendations included reforming the initial public offering (IPO) process, maintaining a better balance between demand and supply in the secondary market, and increasing the average daily trading volume to Rs. 30 billion.
Stakeholders also called on the Nepal Rastra Bank (NRB) to facilitate bank financing for margin trading by broker companies and urged the government to remove the existing rule that prevents banks and financial institutions from selling securities for at least six months after investing in them.
They further proposed replacing the current share-backed loan limit linked to banks’ primary capital with a ceiling of five percent of total lending, arguing that the change would improve market liquidity.
Other suggestions included introducing tax adjustments for individual investment losses, encouraging institutional investors such as the Employees Provident Fund, Citizens Investment Fund and Social Security Fund to increase their participation in the secondary market, restructuring the Nepal Stock Exchange (NEPSE) with strategic partners, and allowing non-resident Nepalis (NRNs) to invest in Nepal’s capital market.
Among those attending the meeting were Stock Brokers Association of Nepal President Sagar Dhakal, NASA Securities representative Sandeep Jalan, Nepal Life Insurance representative Nawaraj Silwal, Nagarik Stock Dealer Company Limited CEO Maheshwor Lal Shrestha, Capital Market Committee Chair Priyaraj Regmi, and investor Ambika Prasad Poudel.
Representing the regulatory authorities, Securities Board of Nepal (SEBON) Chair Gopal Bhatta said the board has already begun implementing the Capital Market Policy for Fiscal Year 2083/84 and Nepal’s Capital Market Roadmap 2083, incorporating recommendations from market participants.
Nepal Stock Exchange (NEPSE) Chair Amrit Lamsal said work has also begun on drafting and amending laws needed to reform the banking, insurance and capital market sectors. #nepal
