KATHMANDU, AUGUST 29

Chairman of Securities Board of Nepal (SEBON) Ramesh Hamal has stressed on developing technological mediums and building a sense of trust among concerned stakeholders for the expansion of the capital market in the country.

Speaking at a programme focused on development of the capital market held here today, Hamal said that there is a need to introduce digital frameworks to ease the market process as well as build trust for accelerated growth of the secondary market, adding that the two are main indicators for the market to move forward.

On the occasion, he also said that SEBON has started giving licences to private equity funds to operate venture capital which will help increase products in the market.

Stating that two companies have already received licences, he said that the board is working toward providing licences to five additional companies very soon. 'We should avoid any sort of monopolistic behaviour in the market, instead vie for a fair and competitive market,' he said.

Similarly, presenting a report on geographical expansion of the secondary market, Manoj Shahi, chairman of Association of Investment Professionals in Nepal (AIAN), said that there is no reason why there should not be an exchange for start-ups. 'We need more companies as it creates more tradable products in the market,' he said.

He emphasised on the need for more exchanges, more tradable products, wider trading network, more investment advisors in the market, introduction of better technologies, tax incentives for investors and improving trust for the expansion of the market.

Shahi also said that development of technology and building security are the main key factors for growth of the market.

Moreover, former executive director of Nepal Rastra Bank (NRB) Gopal Bhatta pointed out that the margin trading directive by SEBON has not come into proper effect despite its introduction a few years ago, mainly due to institutional, technological and financial procedural issues.

He said that the fundamental issue in Nepal is that investors are using their own funds and are taking margin to trade in the secondary market which is regulated by the NRB.

Bhatta suggested building transparency, financial integrity and giving equal opportunity to stakeholders.

President of Stock Brokers' Association of Nepal (SBAN) Santos Mainali, Manager of Nepal Stock Exchange Niranjan Phuyal, Acting Executive Director of SEBON Mukti Nath Shrestha, Executive Director of NRB Prakash Kumar Shrestha, among other members of concerned bodies, were also present at the programme.

A version of this article appears in the print on August 30, 2022 of The Himalayan Times.