Kathmandu. The government has given priority to the stock market. The stock market has been given priority in the action plan prepared by the government to implement economic reforms.
A committee formed by the government to implement the recommendations of the report of the High Level Economic Reform Suggestion Commission formed under the chairmanship of former Secretary Rameshwor Prasad Khanal has prepared an action plan with sectoral and ministerial responsibilities and deadlines. The action plan includes 10 activities that must be implemented along with the restructuring of Securities Board of Nepal (SEBON), NEPSE and CDSC for the improvement of the capital market.
These are 10 activities to be implemented in the capital market
- Promoting investment by mobilizing financial instruments from the capital market by raising awareness about the capital market.
- To facilitate secondary market transactions of government bonds.
- Securities Board shall be restructured and provisions will be made for the Revenue Secretary and Deputy Governor to be represented on the Board. Adding expert members. Removal of representation of private sector and other ministries and bodies.
- Provide margin loans through securities entrepreneurs for securities transactions.
- Provision for issuance of primary shares only after hydropower companies start production.
- Instead of investing in government institutions, the government should make arrangements to mobilize the means for investment by issuing bonds.
- Restructuring of Nepal Stock Exchange for private sector participation and capital enhancement.
- Reduce the cost of issuing shares and bonds and simplify the process to facilitate private sector manufacturing companies to mobilize capital from the capital market.
- Adopt a transparent method for issuing shares through premium and book building process.
({TAG_OPEN_li_21}} Restructuring of CDS & Clearing to provide secure depository services with the participation of other institutions in addition to The Nepal Stock Exchange.
The government has set a deadline of one to two years to implement these activities.
