Kathmandu, Jan. 4:
Finance Minister Bishnu Prasad Paudel Monday expressed the government's
commitment for reform and strengthening the capital market.
Addressing the 21st
Annual General Assembly of the Stock Brokers Association of Nepal (SBAN) in the
capital, he said that the government was ready for any policy, structural and technological
reforms in order to make the capital market more efficient and modern.
"Let's sit together
to find the ways to strengthen the market. I urge the SBAN, Nepal Stock
Exchange (NEPSE) and Securities Board of Nepal (SEBON) to sit together for the
discussion. A representative from the Finance Ministry will also participate in
the discussion," Minister Paudel said.
Saying the capital
market was more concentrated on bank, finance and insurance sector, he stressed
on the need to diversify the market.
He said that the
brokers were the crucial part in the development of the capital market.
"Brokers should work for raising awareness about the capital market in the
general masses."
Dr. Rewat Bahadur
Karki, chairman of the SEBON, asked the brokers to be more competitive and
provide quality services to the investors.
"Brokers are
scared of losing their business as the SEBON is positive towards allowing the
Banks to run trading terminal. But, they shouldn't be apprehensive because the
provision was announced in 2006."
Dr. karki said that the
brokers should be allowed to operate the margin lending facility.
NEPSE chairman Ramji Regmi informed that the
NEPSE was planning to expand trading terminal outside the valley, too.
"NEPSE has 231
listed companies and 131 of them have dematerialized their shares. Total market
capitalization is Rs. 12.32 billion," he said.
Priya Raj Regmi,
President of SBAN pointed out structural, legal and technological lapses that
hampered in the growth of the capital market.
He asked the government
to allow them to run margin trading, investors training and consultation services,
investment management services and broker dealership in order to develop them
into full fledged broker.
"If the regulator
allowed the brokers to have foreign strategic partner with their technology and
capital, they would impart services as par the regional and international
level," he stated.
Regmi said that the
capital market regulation was weak in Nepal and demanded to add new tools like
Options, Futures and Warrants in the capital market on the basis of NEPSE index
and listed companies.
"In order to make
the secondary market more credible, Clearing House with Settlement Guarantee
Fund and Auction Market should be established as soon as possible."
Dr. Fatta Bahadur KC,
chairman of Beema Samiti (Insurance Board – IB), stressed on the need to reform
the capital market.
Prakash Jwala, chairman
of the legislature-parliament's Finance Committee, Pashupati Murarka, president
of the Federation of Nepalese Chambers of Commerce and Industry and Upendra
Poudyal, president of Nepal Bankers Association also addressed the AGM.
;line-height:115%;font-family:"Times New Roman","serif"'>He
appreciated the department for its cooperation and coordination with the
private sector to ease the import and export of goods during the blockade and
stressed for a strong cooperation between the FNCCI and DoC in order to reduce
the non-tariff expenses. President of Confederation of Nepalese Industries (CNI) Narendra Basnyat suggested to involve the private sector in the customs reform process.
The department felicitated the FNCCI, its former director generals Tika Dutta Niraula and Ran Bahadur Shrestha, employee Ram Dutta Bhatta and journalist of Karobar Daily Mohan Gurung on the occasion.
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