Training workshop on commodities concludes
KATHMANDU: The commodities market is emerging, it has immense growth potential and will continue to expand in multiple horizons within two years, said experts at a two-day workshop on ‘Futures and Derivatives Market (Commodities, Forex, Options, Structured Products)’ that concluded here today.
Since the market is complicated and ruled by international events, economies, new investors need to be educated fundamentally and technically. A training workshop was the need of the hour, Frank Reudi from Swisscontact said in the programme organised by Jamb Technologies with technical assistance of Swisscontact in close coordination with Morningstar Investment Service (a subsidiary of Jamb) and United Finance.
There are 50 registered brokers involved in commodities business and the business has already spread Kathmandu Valley. According to estimates, there are around 8,000 traders of whom 5,000 are active in the market, Morningstar Investment Service said.
With the growth of the market, more complaints and greivances are also coming up and to address them a regulation is a must. “Intially, we didn’t have a market, but now we have a market spread all over Nepal, and it needs to be regulated,” according to Morningstar. “Tax imposed on commodites trading should also be scientifically addressed as there should be the provision of rebate and charges on net profit not on gross profit such as what prevails.
Swisscontact is the organisation of the Swiss private sector for development cooperation which promotes private economic and social development in selected countries of South and East Asia.
Commodities and Metal Exchange Nepal (COMEN) that started its operations in 2007. Mercantile Exchange Nepal (MEX) and Nepal Derivative Exchange Ltd have just started.