Budget Watch : Strengthen Sebon

The lengthening line of investors clutching share application forms at the collection centres clearly shows an investment ‘hunger’ among Nepali investors. This is an opportunity for the entrepreneur to collect funds through capital market and for the government to develop investment friendly policies to channel funds through capital market in productive sectors. To manage, develop and satisfy the hunger of capital market the following points are recommended:

• Strengthen Securities Board of Nepal (Sebon), the regulator of Nepali capital market, financially, technically, resourcefully. It should not become an avenue of political appointment but should be developed as an avenue of capital market experts.

• Encourage private sector to establish solid waste management (fertilizer) company to solve the day-to-day problem of waste management in urban areas like Kathmandu Valley.

• Decentralise stock market and Central Depository System (CDS) should be initiated and different trading centers should developed in major cities. It will broaden the area of capital market.

• Address the problems of shareholders of Agriculture Development Bank Ltd.

• Limited number of brokers and their long time syndicates should be broken by strengthening Nepse’s resources and bringing easy entry-exit policy of brokerage firms.

• Create investors’

identification to identify real investors and control fraud in IPO.

• Being an agricultural country, agro-based companies should be brought into the area of capital market to increase production and fulfill the increasing need for food.

• Tourism, hotel and hydropower companies should be encouraged to provide profitable investments avenues to the hungry investor and boost the country’s economy.

• Incorporate in the budget options to facilitate

micro hydropower to

use local resources (capital and water).