Capital market central to Nepal’s economic development: PM Shah

KATHMANDU: Prime Minister Balendra Shah said the capital market is central to Nepal’s economic development and the government’s plans for entrepreneurship and job creation.

Speaking at a meeting with stakeholders and regulatory bodies at the Office of the Prime Minister and Council of Ministers, PM Shah said the development of entrepreneurship and the creation of employment through the capital market are top priorities for the current administration. He urged businesspeople to work with high morale and said the government will adopt a zero‑tolerance approach to irregularities.

Representatives of stakeholder organisations proposed a range of legal, policy, institutional and systemic reforms for the market’s sustainable development. They recommended changes to the process for issuing primary shares, measures to balance demand and supply in the secondary market, and an increase in the daily transaction ceiling to Rs 30 billion.

Stakeholders called on Nepal Rastra Bank to facilitate credit flow for brokerage firms involved in margin trading through banks and financial institutions (BFIs). They urged removal of the rule that prevents BFIs from selling securities for six months after investing in them and proposed that the limit on share‑collateral loans be fixed at 5% of total loans rather than being linked to primary capital.

Further demands included tax adjustments to allow losses from individual transactions to be offset, encouragement for large institutional investors such as the Employees Provident Fund (EPF), Citizens Investment Trust (CIT) and Social Security Fund (SSF) to invest in the secondary market, restructuring the Nepal Stock Exchange with strategic partners, and enabling non‑resident Nepalis to invest in the capital market.

On behalf of regulators, Securities Board of Nepal (SEBON) Chair Gopal Bhatta said SEBON has implemented the Capital Market Policy for fiscal year 2026/27 and Nepal’s Capital Market Roadmap 2083, taking stakeholder suggestions into account. Nepal Stock Exchange Chair Amrit Lamsal said work has begun on drafting and amending the necessary acts for reform of BFIs, insurance and capital markets.

The meeting was attended by Stock Brokers’ Association of Nepal (SBAN) President Sagar Dhakal, NASA Securities representative Sandeep Jalan, Nepal Life Insurance representative Nawaraj Silwal, Nagarik Stock Dealer Company CEO Maheshwor Lal Shrestha, Capital Market Committee Chair Priyaraj Regmi, and investor Ambika Prasad Poudel.

(With inputs from RSS)