Finance Minister Explains Stock Market Decline Due to Psychological Fear and Legal Actions

Kathmandu. The Finance Minister has given an explanation regarding the recent decline and fluctuations in the stock market. Responding to questions raised during the discussion on the Economic Act, 2081 in the House of Representatives, the Finance Minister stated that the main reasons for the market's decline are psychological fear and the process of legal action.

The Finance Minister informed that the government is closely monitoring the significant deviations seen in the capital market and insurance sector. He mentioned that recently, various cases with claims exceeding 100 billion rupees have been initiated, and the capital market and insurance sector are at the center of this. During his address, the Finance Minister said, 'Currently, cases involving claims exceeding 100 billion rupees are underway. The capital market and insurance sector are seen at the center of this. As this process of investigation and action progresses, some investors may have experienced confusion or fear of 'falling into it too'. This is the impact seen in the market.' He indicated that the initiation of legal action against those involved in major irregularities has created some temporary uncertainty in the market.

He also clarified that the government is not concerned about the daily fluctuations of the stock market. 'We do not look at how much the stock market goes up or down in an hour,' the Finance Minister said, 'The government's focus is on the long-term health and stability of the market. Making the market transparent and disciplined is our priority.'

The Finance Minister urged investors not to follow rumors and to be confident in the long-term improvement of the market. He claimed that the government is working on the development of the capital market through policy and that the current situation is temporary.