MP Bidushi Rana Calls for Capital Market Development as Economic Engine

Kathmandu. National Independent Party MP Bidushi Rana has stated that Nepal's capital market should be developed not just as a means of trading shares but as an engine for the overall economic development of the country.  

On Wednesday, during a discussion with the new leadership of the Securities Board of Nepal (SEBON) in the Finance Committee meeting, MP Rana expressed this view. She emphasized the need to restore investor confidence and connect the market with the real economy. Although there are more than 7.8 million share users and a large number of Demat accounts, the depth of the market is still limited, and it needs to be expanded, she said.

MP Rana stated that transparency in the capital market should be increased to regain the lost confidence of investors and that the market should be developed as a mirror of the country's real economy.  

She noted that although the number of investors is large, the market is still superficial, and she pointed out the need for a concrete strategy to attract long-term and institutional investment to increase market depth and liquidity.  

She demanded that new instruments such as corporate bonds, small and medium enterprise exchanges, real estate investment trusts, and venture capital, which have been discussed for years, be brought into operation with a clear action plan and timeline.  

She argued that since the market capitalization has exceeded more than 70 percent of the total gross domestic product, its success should now be measured by how much capital it has flowed into productive sectors such as industry, infrastructure, and energy.

She urged the board to bring concrete results within the next two years by making extensive improvements in market infrastructure and transparency to attract foreign institutional investors.  

She emphasized the need to reduce manipulation and risk by immediately implementing artificial intelligence, real-time monitoring, and cybersecurity systems for modern market surveillance.  

MP Rana stated that the success of the capital market should be viewed not only based on the fluctuations of the market index (NEPSE) but also on its contribution to production, employment, and investment growth.