Kathmandu. Nepal’s stock market, which has a long history, is yet to move forward in a transparent manner. As the number of investors in the stock market increases, the investment risk also increases. Some players in the market have been tricking gullible and small investors by adopting various tricks. However, the regulatory body Nepal Securities Board and market operator Nepal Stock Exchange (NEPSE) have not yet been able to create a dynamic environment to operate the market in a transparent manner.
There are a lot of investors with financial awareness in Nepal’s stock market. The question may arise as to how safe is the investment of investors who do business on the basis of others.
It’s not that everyone earns in the stock market. Investors who understand the market here are also drowned. Only a limited number of investors have been successful in the stock market after carefully studying the market movements and the financial health of the company.
In such a situation, the Securities Board should take appropriate steps to secure the investment of the common investor. In the recent past, the Securities Board is going to increase surveillance to prevent unwanted activities in the market, as well as bring some special arrangements to tighten self-proclaimed technical analysts and prevent rumors about the stock market on social media.
In this context, there is a need for the Securities Board to form a supervisory task force to control activities affecting the market on social media. There is also a need to develop an international market supervision system. The development of such a task force and system will help in controlling activities on social media in a way that is unfavorable to the market.
On the other hand, the number of self-proclaimed technical analysts in the stock market is increasing. It seems that the Securities Board should take appropriate steps in time to attract such technical analysts. For this, there is an urgent need to start the tradition of licensing technical analysts, investment consultants and research analysts by setting standards.
Such licenses can be given by the Securities Board after examining the expertise related to the stock market of the individual. The Securities Board can also bring a provision to provide for renewal by specifying the time period of the license. For this, the Securities Board can make legal arrangements by formulating regulations.
Especially in the stock market, there is more movement of interest groups. The Securities Board should bring a legal provision to manage such groups.
Similarly, market operator NEPSE has recently made arrangements to determine the final transaction price of the shares by extracting the average price after the last 15 minutes of trading. It seems necessary to make it more timely.
Nepse needs to bring new advancement technologies and other products to operate the stock market in a systematic and timely manner. Nepse restructuring has been going on for years. But it hasn’t happened. It seems that the government should take appropriate initiatives to restructure NEPSE.
Both the agencies should include the activities of spreading stock market and financial awareness to the investors along with proper programs of market reform in the annual policy and program of the upcoming fiscal year.
