Kathmandu, Mar. 2
The Ministry of Finance has directed the newly appointed chairman of the
Securities Board of Nepal (SEBON) and chief executive officer of Nepal Stock
Exchange Limited (NEPSE) to create environment where the manufacturing and
infrastructure sector companies could raise money for their investment.
Issuing an 11-point directives to Chairman of SEBON, Ramesh Hamal and CEO
of NEPSE, Krishna Bahadur Karki, Minister for Finance Janardan Sharma asked
them not to work under the pressure or influence of any.
“People are investing in the capital market. Now the SEBON and NEPSE
should pay attention to channelising the money to the large projects. The
current need is to manage investment for the national pride projects,” he said.
The Minister also urged not to do any politics in the capital market and
let it run independently. He directed them to discourage the malpractices in
the market.
“No one informed me about the circular transaction, pump and dump and
insider trading in the share market while I joined the office, however, I have
tried to bring them into the legal jurisdiction. I hope there won’t be such
malpractices in the market from now on,” he said.
The Ministry’s directive includes the issues of the entry of small
investors in the capital market, protecting the small investors active in the
market, giving priority to the OTC market, enhancing mutual cooperation between
the SEBON and NEPSE, facilitating new companies to be listed in the stock
market, increasing the capacity of the brokers, and increasing the capacity of
the software.
Likewise, opening the capital market for the small companies and
start-ups, developing SME and OTC market, reforming the system to allow
intra-day transaction and short selling, launching automation auction, and
preparing ‘sub-broker’ model are included in the directives.
The ministry also wants large cap index, mid cap index and small cap
index in the share market.
Finance Secretary Madhu Kumar Marasini expressed his hope that the new
leadership would lead the capital market on the path of positive development.
Revenue Secretary Krishna Hari Pushkar said that the Nepal’s capital market
should be competitive with the international markets.
Hamal said that he would implement programmes of financial literacy so
that the investors wouldn’t be influenced by the rumours in the market.
Published in The Rising Nepal daily on 3 March 2022.
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