Creating an investor-friendly capital market: FinMin – The Himalayan Times – Nepal’s No.1 English Daily Newspaper

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KATHMANDU, MARCH 2

Finance Minister Janardan Sharma has requested the Securities Board of Nepal (SEBON) and the Nepal Stock Exchange (Nepse) to establish an investor-friendly capital market in Nepal.

Speaking at the discussion program held at the Ministry of Finance today, Minister Sharma urged the two bodies to channel funds generated from the equity market to the infrastructure and manufacturing sectors.

“Public money that has entered the capital market can be used for capital formation.

SEBON and Nepse should focus on investing in development projects,” he said.

Likewise, he also highlighted the need to combat fraudulent practices in the secondary market such as insider trading, circular trading and pump-and-dump.

“No one formally discussed such illegal activities prior to my tenure,” he said.

“Since my appointment, this kind of wrongdoing has been investigated and brought under control.”

During the program, Minister Sharma also issued an 11-point directive to SEBON and Nepse, which includes conducting studies on equity market operations in foreign countries like India, China, Pakistan , Bangladesh, the United States and the United Kingdom to make the national stock market more progressive.

Other instructions include the development of the over-the-counter market to initiate trading of public companies that have not been listed and/or are not yet eligible to issue initial public offerings (IPOs); launch of automatic auctions, preparation of a “sub-broker” model to improve the capacity of brokers, among others.

A version of this article appears in the March 3, 2022 printing of The Himalayan Times.

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