Kathmandu, December 24

The Finance Committee under the Federal Parliament has urged stock market investors to submit their suggestions in writing for implementation of a 58-point suggestion made by Nepal Rastra Bank (NRB) for capital market reforms.

In this regard, Finance Committee had summoned representatives of share investors’ associations today and held a discussion on the best way to implement the suggestions made by central bank.

Uttam Aryal, chairperson of Investors’ Association of Nepal, had led the discussion from the investors’ point of view. Hence, the committee has tasked him to submit the suggestions of the investors in writing.

During the discussion today, various representatives of the investors opined that the government should issue broker licences to banks.

As per Aryal, investors also asked concerned authorities to take an initiative to reduce the interest rate of banks. Investors demanded that the 58-point suggestion be implemented without further adieu for improvement of the stock market.

In December 2018, the Ministry of Finance had formed a task force under the then deputy governor of Nepal Rastra Bank Shivraj Shrestha to look into the problems facing the share market. The task force was formed after share investors had launched protests protesting unfavourable government policies, extremely high bank interest rates, among other issues.

Although some suggestions of the task force have been implemented by the government, the stock market has not improved significantly. The government has already set up the settlement guarantee fund and changed Nepse’s software.

The suggestions that are yet to be implemented include resolving the capital gains tax dispute, enhancing margin trading, etcetera.

Earlier, it was decided that the Citizen Investment Trust would be designated as market dealer, but lack of necessary preparations by the Securities Board of Nepal has halted the process.

Today’s delegation of share investors also included Tulsi Dhakal on behalf of Nepal Investors Forum and Radha Pokharel on behalf of Nepal Pujibazar Laganikarta Sangh, among others.