Stock Broker Association of Nepal Urges Finance Minister to Address Capital Market Challenges

Kathmandu. The Stock Broker Association of Nepal has drawn the attention of the Finance Minister to resolve existing problems in the capital market. On Monday, a delegation led by the Association's General Secretary, Bhaktiram Ghimire, submitted a memorandum seeking reforms in the stock market. 

The Association presented a five-point demand to Finance Minister Wagle. General Secretary Ghimire stated that the demands were made for the development of the market, which currently involves 5.6 million investors and 92 brokers. 

During the meeting, Finance Minister Wagle expressed that the government is positive about fulfilling these demands. He urged investors to invest with confidence, stating that this government is committed to the liberal economy established since 2048. 

These are the Association's demands 

1. We request the immediate implementation of the remaining suggestions provided by the Capital Market Reform Task Force.

2. Arrangements should be implemented immediately to allow banks and financial institutions to enter and exit the capital market easily. (Currently, there is a provision that purchased shares can only be sold after a period of 6 months)

3. Arrangements should be made immediately to allow Non-Resident Nepali citizens to trade shares in the secondary market easily.

4. It should be clarified through this budget that capital gains tax is the final tax. To boost the morale of small investors in the market, an environment should be created to easily invest funds held by government institutions under various names into the secondary market.

5. Given that the market cannot fully guarantee the transfer of securities, the current provision of direct 'close-out' when securities cannot be transferred after a sale harms investors. To resolve this, an auction market should be started as soon as possible.