Govt has no intention of launching crackdown on small shareholders: Finance Minister Wagle

KATHMANDU: Finance Minister Dr Swarnim Wagle on Tuesday urged investors to remain calm after recent turbulence in the share market.

He said the government has no intention of launching a crackdown on small shareholders and will act only where there is clear evidence of wrongdoing.

Speaking at a discussion with Society of Economic Journalists — Nepal (SEJON), Minister Wagle said efforts were being made to “spread fear in the share market.” He stressed ordinary investors were not the target of government action. “The government does not have any intention of taking action against small investors,” he said.

Wagle said Nepal’s share market is organised and transparent, noting its paperless transactions, bank-mediated trades, direct dividend transfers, a clear tax regime and traceable records of buyers and sellers.

He said the government views the stock market as a model for digitalisation and that the Prime Minister intends to replicate similar systems across other sectors.

“There is no situation in the stock market where one is asked, ‘Where did you bring this wealth from?’ The government has not adopted a policy of crackdowns,” he said, adding that any action against those involved in insider trading, manipulation or other unethical activities would follow “existing laws.”

On market sentiment, the finance minister urged investors not to panic over short-term declines. “There is no need to be flustered by the current market decline; ‘golden days are coming.’ This government will work for 265 weeks,” he said.

Planned improvements will follow a study of the Nepal Stock Exchange (NEPSE) restructuring report. He also referred to the Rastriya Swatantra Party manifesto, saying, “Points 33 and 34 of the RSP manifesto are to be implemented. Investors may study them to see how liberal we are toward the share market.”

Turning to wider financial governance, Minister Dr Wagle said the government’s priority is to remove Nepal from the Financial Action Task Force (FATF) grey list, which he said has damaged the country’s reputation and harmed the investment climate. The administration has moved from discussion to implementation on measures to address the issue, he added.

On investigations into money-laundering and other financial crimes, he said long-running probes are based on “irrefutable evidence” and aim to impose financial penalties for white-collar crime rather than harass institutions or individuals without cause. “We have no intention of targeting specific institutions or individuals to cause trouble. We believe in an open market economy, but that does not mean an unregulated economy,” he said.

The minister emphasised that judicial resolution is the responsibility of the courts and that enforcement actions will follow legal procedures. “Action is not about targeting anyone; it is only about proceeding according to the law,” he said, adding, “No one will be granted immunity from crime, but the private sector will not be subjected to crackdowns.”

Wagle concluded by assuring investors that regulatory action will be evidence-based and lawful, and that the government will work to strengthen market transparency and investor protection in the coming days.