Provincial ministry likely to have 'Capital Market Focal Person'

Biratnagar, Dec. 26

The Ministry of Economic Affairs and Planning of Province 1 and Securities Board of Nepal (SEBON) have expressed their readiness to appoint a 'capital market focal person' at the provincial ministry.

Secretary of the Ministry, Suman Dahal, at province-level 'Capital Market Awareness Programme' proposed the agenda and said that there should be a close coordination between the SEBON and provincial government in expanding and strengthening capital market and share market in the province.

In response, Executive Director of SEBON, Niraj Giri, maintained that the presence of the capital market regulator could be initiated with the focal person.

"The SEBON was planning to create provincial offices across the country but shied away because there is not enough business to handle for the provincial office. While we were waiting for some time, the proposal made by the provincial Economic Affairs Ministry is pragmatic one," he said.

According to him, stock brokers' companies would be brought to the provinces in coordination with the federal and provincial governments.

The Capital Market Awareness Programme was jointly organised by the Nepalese Association of Financial Journalists (NAFIJ) and Merchant Bankers Association of Nepal (MBAN) in Biratnagar the other day.

Share market investors and representatives of the private sector association in the province have demanded for the presence of SEBON here.

CM pledges support to capital market

Addressing the programme, Chief Minister of the province, Rajendra Kumar Rai, said that since the capital market supports in collecting money scattered in the society and supplies funds to business and economic development, the government is not against it.

"However, we should not forget that capital market has not yet gained people's confidence. There is a need of extensive awareness and education programmes," he said.

CM Rai pledged his support in the development and expansion of capital market in Province 1. "We want to see the development of capital market here. If there is a need of a new law, we will create it, and coordinate with the federal government as well," he said.

President of Confederation of Nepalese Industries, Province 1, Bhim Ghimire, said that a large number of people have not been able to reap the benefits of share market due to the lack of awareness and education. According to him, all stakeholders including investors and government bodies in Mofusil are inactive in this regard.

President of Nepal Chamber of Commerce, Province 1, Suresh Man Shrestha, demanded for a clear and concise policy for the development of capital market out of the Kathmandu Valley. He pointed to the need of effective cooperation among the regulators and governments at all levels.

Likewise, Advisor of the Federation of Nepalese Chambers of Commerce and Industry, Province 1, Avinash Bohra, said that there is no absence of capital market in the province but it lacks the required infrastructure for the same.

President of the MBAN, Mekh Bahadur Thapa, said that other investment instruments should be introduced in the share market and they should be expanded to the provinces. 

Published in The Rising Nepal daily on 27 December 2021.