Nepal’s Stock Market Under Control of “Pump and Dump” Groups, Says Investors’ Association
Despite policy reforms, investor confidence in NEPSE remains low. According to the Nepal Stock Market Investors’ Association, short-term traders and manipulative groups have captured the market, turning it into a speculative arena rather than a long-term investment platform.
Nepal’s stock market continues to decline despite ongoing policy reforms aimed at stabilizing and developing the capital market. Investor associations and market stakeholders have been appealing to authorities, urging effective implementation of reform measures.
Rabin Kandel, General Secretary of the Nepal Stock Market Investors’ Association, stated in an interview with Sudha Devkota that the market is “under the control of pump and dump operators,” who artificially inflate and crash share prices for personal gain.
He emphasized that while recent policy recommendations have provided temporary relief, they are insufficient for sustainable recovery. “The task force’s measures act like a small umbrella during a financial storm—helpful, but not enough to prevent losses,” Kandel said.
Kandel pointed out that Nepal’s unstable government and weak regulatory enforcement have prevented proper market structuring. Many investors have lost confidence, leading older investors to exit and fewer new investors to enter the market.
Although remittance inflows remain strong, only around 10% of the funds are being invested in productive sectors such as capital markets and industries. This limited participation, Kandel said, contrasts sharply with the billions the stock market could potentially generate for the economy.
He also criticized the widespread misunderstanding about capital markets. “The government itself discourages market participation by labeling it as risky. When policymakers treat the market like a gambling zone, investors naturally misunderstand its true purpose,” he added.
According to Kandel, many small investors view the stock market as a quick-profit scheme rather than a long-term growth platform. “Those manipulating prices—the pump-and-dump groups—have captured the market. Regulators are either unaware or unwilling to act,” he said.
Kandel called for stronger regulation, transparency, and accountability. “If these manipulative practices continue, the market could face a major crash, which will ultimately harm even those currently exploiting it,” he warned.
He also urged the government to create better investment opportunities by promoting long-term projects and offering tax incentives for those investing in sustainable ventures. “Nepal has money and investors, but not enough avenues. The government must ensure attractive, safe investment options,” he concluded.