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Prime Minister Balen Pledges Capital Market Reforms, to Hold Implementation Talks with NRB, SEBON and NEPSE

Prime Minister Balendra Shah (Balen) has assured capital market stakeholders that the government will discuss reform proposals with Nepal Rastra Bank

Nepalytix
5 min read
Prime Minister Balen Pledges Capital Market Reforms, to Hold Implementation Talks with NRB, SEBON and NEPSE

Prime Minister Balendra Shah (Balen) has pledged to advance policy and structural reforms aimed at strengthening Nepal's capital market following discussions with investors and industry stakeholders.

During a one-hour meeting held at the Office of the Prime Minister and Council of Ministers in Singha Durbar, representatives from brokerage firms, investor associations, the FNCCI Capital Market Forum, the Securities Board of Nepal (SEBON), the Nepal Stock Exchange (NEPSE), and other concerned institutions presented their recommendations for improving the market.

Speaking to journalists after the meeting, investor Ambika Paudel said the Prime Minister listened carefully to concerns regarding capital market development, investor confidence, and long-term market expansion.

According to participants, discussions covered several key issues, including policy reforms by Nepal Rastra Bank, strengthening the regulatory roles of SEBON and NEPSE, and amendments to tax and legal provisions under the Ministry of Finance.

The Prime Minister emphasized that the capital market is an important channel for mobilizing investment and supporting Nepal's economic growth. He assured stakeholders that the government is committed to restoring investor confidence through practical reforms.

Priyaraj Regmi, representing the FNCCI Capital Market Forum, said investors submitted several policy recommendations during the meeting. These included introducing intraday trading, facilitating investment by Non-Resident Nepalis (NRNs), increasing institutional investor participation, restructuring NEPSE, reforming the IPO allocation system, and allowing capital gains tax only after adjusting investment losses.

According to Regmi, the Prime Minister responded positively to the proposals and committed to holding further discussions with officials from Nepal Rastra Bank, SEBON, NEPSE, and CDS and Clearing Limited before moving forward with implementation.

Market participants believe the government's willingness to engage directly with stakeholders could help accelerate reforms and strengthen confidence in Nepal's capital market.

Nepalytix

Financial News Reporter