KATHMANDU: Finance Minister Dr. Swarnim Wagle has directed officials to propose legal measures for the development and reform of the capital market.
The instruction was issued during a meeting held at the Ministry of Finance on Monday with high-ranking officials from the Nepal Rastra Bank and the Securities Board of Nepal.
Participants included Nepal Rastra Bank Governor Dr. Bishwanath Paudel, Securities Board Chairman Dr. Gopal Bhatta, Deputy Governor Kiran Pandit, and Securities Board Deputy Executive Director Narayan Sharma Paudel.
The Nepal Stock Exchange (NEPSE) index has recently hovered around the 2,500-point mark, although transaction volumes remain weak.
Over the past six months, the index has fallen by nearly 400 points, with market capitalization shrinking by approximately Rs 700 billion.
Amidst declining investor confidence and sluggish economic activity, the Ministry of Finance is currently drafting a capital market strengthening and reform plan.
The ministry stated that the upcoming plan will prioritize strengthening market fundamentals, improving regulatory transparency, and protecting investor interests rather than artificially inflating the market.
While efforts to improve the market are underway, experts have advised investors to base their strategies on the financial health, valuation, and risk profiles of companies rather than making hasty decisions.
The Securities Board of Nepal has also issued various directives to the Nepal Stock Exchange, CDS and Clearing Ltd, brokers, and listed companies to make the market more transparent, secure, and technology-friendly.
