KATHMANDU : Prime Minister Balendra Shah has said that the capital market plays an important role in the country’s economic development.
During a discussion with stakeholders and regulatory bodies at the Office of the Prime Minister and Council of Ministers today, Prime Minister Shah said that the development of entrepreneurship and job creation through the capital market is a top priority of the current government.
He urged businesspersons to work with high morale and shared that the government has a clear policy of encouraging those who work and adopting a zero-tolerance policy against those indulging in irregularities.
On the occasion, representatives of stakeholder organizations suggested legal, policy, institutional and systemic reforms for sustainable development of the market.
Talking to the media following the meeting, stakeholders said they were very positive about the dialogue held with Prime Minister Shah. They said they suggested reforms in the process of issuing primary shares, maintaining a balance between demand and supply in the secondary market, and increasing the daily transaction amount to Rs 30 billion.
Similarly, they expressed the view that Nepal Rastra Bank should take necessary steps to facilitate credit flow for broker companies related to margin trading through banks and financial institutions.
They also urged the Prime Minister to abolish the existing system that prohibits banks and financial institutions from selling securities for at least six months after investing in them and to make arrangements to fix the limit of share collateral loan at five percent of the total loan instead of linking it to primary capital.
They demanded that the Ministry of Finance should make arrangements for tax adjustment on losses incurred in individual transactions, encourage large institutions such as the Employees Provident Fund, Citizens Investment Fund and Social Security Fund to invest in the secondary market, restructure the Nepal Stock Exchange with strategic partners, and pave the way for non-resident Nepalis to invest in the capital market.
The discussion was attended by 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.
On behalf of the regulatory body, Securities Board of Nepal Chair Gopal Bhatta informed that the SBN has already implemented the Capital Market Policy for the fiscal year 2083/84 and Nepal’s Capital Market Roadmap 2083, taking into account the suggestions of the stakeholders.
Nepal Stock Exchange Chair Amrit Lamsal said that the process of formulating and amending the necessary acts for the reform of banks and financial institutions, insurance, and capital markets has begun.
