KATHMANDU, MARCH 2
Finance Minister Janardan Sharma has directed the Securities Board of Nepal (SEBON) and Nepal Stock Exchange (Nepse), to create an investor-friendly capital market in Nepal.
Speaking at the discussion programme held at the Ministry of Finance today, Minister Sharma urged the both the bodies to channelise the funds generated from the share market towards infrastructure and manufacturing sectors.
'The public money that have entered the capital market can be used for capital formation.
Both SEBON and Nepse need to focus on investing on developmental projects," he said.
Likewise, he also stressed on need to curb fraudulent practices in secondary market such as insider trading, circular trading, and pumpand-dump.
"No one has formally discussed such illegal activities prior my tenure," he said.
"Since my appointment, this kind of malpractices have been investigated and brought under control."
During the programme, Minister Sharma also issued an 11-point directive to SEBON and Nepse, which includes carrying out studies on the operations of the share markets in foreign countries like India, China, Pakistan, Bangladesh, the United States and the United Kingdom to make the domestic share market more progressive.
Other instructions include developing OTC market to initiate trading of public companies that have not been listed and/or are not yet eligible to issue initial public offerings (IPOs); initiating automaton auction, prepare 'sub-broker' model to enhance the capability of brokers, among others.
A version of this article appears in the print on March 3, 2022, of The Himalayan Times.
