Key Takeaways:

• PM Shah says capital market vital for economic growth and job creation
• Government promises support for genuine businesses, zero tolerance for irregularities
• Stakeholders call for reforms in share issuance, secondary market balance, and trading volume targets of Rs 30B daily
• Recommendations include margin trading loans, NRN investment access, tax adjustments, and restructuring NEPSE with strategic partners

KATHMANDU, JULY 21 Prime Minister Balendra Shah has said promoting entrepreneurship and creating jobs through the capital market are among the government's top priorities, stressing the sector's role in driving economic growth. During a discussion with stakeholders and regulators at the Office of the Prime Minister and Council of Ministers on Sunday, Shah urged the private sector to work with confidence, assuring that the government will support genuine businesses while maintaining zero tolerance towards irregularities. Representatives from the capital market sector called for legal, policy and institutional reforms to ensure sustainable development. Their recommendations included reforms to the primary share issuance process, measures to balance demand and supply in the secondary market, and efforts to raise daily trading volume to Rs 30 billion. Stakeholders also urged authorities to facilitate margin trading loans through banks, review restrictions on institutional investors, revise share-backed lending provisions, and allow non-resident Nepalis to invest in Nepal's capital market. They further called for tax adjustments on investment losses, greater participation of large public funds, and restructuring of the Nepal Stock Exchange with strategic partners. Securities Board of Nepal (SEBON) Chair Gopal Bhatta said the board has already implemented the Capital Market Policy for FY 2083/84 and the Capital Market Roadmap 2083. Nepal Stock Exchange Chair Amrit Lamsal added that work has begun on drafting and amending laws related to banking, insurance and capital market reforms.