The Investors’ Association has submitted a set of policy recommendations aimed at capital market reform, investment-friendly regulation, and long-term economic transformation for Nepal’s upcoming fiscal year 2083/84 budget.

The proposal was presented to the acting chairperson of the Securities Board of Nepal by the association’s General Secretary, S.P. Chaulagain. The letter emphasizes the need to develop the capital market as a strategic pillar of long-term economic growth.

According to the association, Nepal’s capital market is no longer just a platform for stock trading but is directly linked to the savings and financial future of millions of citizens. However, inconsistent tax policies, weak institutional participation, low liquidity, and insufficient investor protection have hindered its development.

The association has recommended making Capital Gains Tax (CGT) a final tax to ensure tax stability and introducing simplified systems for Non-Resident Nepali (NRN) investors, including online KYC, demat accounts, trading access, and tax facilitation.

It has also proposed a clear legal framework for listed companies to conduct share buybacks, along with sector-focused policies to channel long-term investments into energy, infrastructure, agriculture, tourism, and technology.

Further recommendations include clarity on taxation related to bonuses, rights shares, mergers and acquisitions, and expanding participation of pension funds, insurance funds, mutual funds, and foreign institutional investors.

The association also suggested allowing banks and financial institutions to invest a certain percentage of their core capital in the capital market.

It expressed confidence that with policy stability and strong political commitment, Nepal’s capital market can evolve into a key driver of national economic prosperity.