Kathmandu. The capital market reform task force formed by the interim government has already submitted its report to the Ministry of Finance.
The government had formed a 4-member task force under the coordination of Acting Executive Director of the Securities Board of Nepal (SEBON) Rupesh KC. The task force led by Dr KC had submitted its report to the Ministry of Finance on September 24 after preparing its report within 5 working days.
The Ministry of Finance has already forwarded the process to implement the report submitted by the taskforce. The ministry has already sent a letter to the Securities Board of Nepal, Nepal Stock Exchange (NEPSE) and Nepal Rastra Bank (NRB) directing them to implement the works suggested in the report.
The task force led by KC has suggested 15 immediate actions to be carried out especially for capital market reform. The Ministry of Finance, Nepal Rastra Bank, Securities Board of Nepal (SEBON), NEPSE and CDSC have been designated as the responsible bodies in which the task force has suggested to carry out these works within the time limit of 3 months.
The task force The central bank has been asked to remove the single customer loan limit of Rs 25 crore. The task force expects that this will increase the share loan and boost the morale of the investors.
The task force has also recommended scrapping the provision allowing banks and financial institutions to invest in shares and debentures of listed companies for a period of more than one year. This will encourage the investment of institutional investors in securities, according to the task force.
The task force has suggested the Nepal Rastra Bank (NRB) not to impose any additional penalty on the margin loan issued on shares by mid-October 2082. This is expected to boost the morale of investors.
Similarly, to implement margin trading system through securities brokers, to maintain uniformity in the issue provided by CDSC, to develop a new index on the basis of tradable shares by retaining the existing NEPSE index as an all-equity index and to use it as a benchmark index and to review the rules of circuit breaker on the basis of that, to make arrangements for investors to open two or more beneficiary accounts, The task force has also suggested the government to establish a grievance management mechanism to address the problems and grievances of investors immediately and to effectively complete the investigation of securities related offences on time.
Here are the immediate actions to be taken to reform the capital market
workforce report
