Government to investigate income source of investors exceeding Rs 10 lakh in share transaction

Government will now investigate income source of investors investing Rs 10 lakh at a time in share transaction. The government has come up with such action with the doubt of use of black money in the share market. Lately the secondary market is gradually increasing. Ministry of Finance and other agencies related to money laundering has come up with the decision as concerned authorities from national and international level raised the issue and suggested to investigate the source of investment. Organized by the finance ministry, there had been a conference regarding Nepal’s preparation on Anti money laundering and use of terrorist money in financial activities. ‘The workshop had a serious discussion on the unusual growth of share market and the flow of investment in it.’, said an official of Nepal Rastra Bank. Another official said, the meeting focused on the subject to unveil the investment source in the share market investment alike in bank and to take immediate action for its implementation process.’ With the suspicion of money laundering, the discussion concluded to investigate in the issue. Delegates from Nepal Rastra Bank, Home Ministry were present in the workshop. Nepalese economic growth has slackened with the devastating earthquake and Terai Movement and share market is the only sector leaning upward. According to an official of Department of Money Laundering Investigation, the department not only pointed the share market rather it emphasized to investigate in other sectors investment too. ‘More people are concerned in it as more investment is pouring in the share market regardless of the poor economic base of the country.’ added the official. Capital market transaction is taken as a country’s major   economic indicator in the world market however the scenario is not the same in the context of Nepal. According to Rewat Bahadur Karki, Chairman of Securities Board of Nepal, ‘Investors invest hastily in the share market without evaluating the concerned company and entire economy in totality resulting unusual growth of share market. However Karki did not open up in the issue of charging for investment of more than Rs 10 lakh in share transaction. According to Kamalesh Kumar Agrawal Secretary General of Nepal Chamber of Commerce said, ‘The government is strictly planning to implement policy for investigation on the issue and it will demotivate investors.’ ‘The issue will be discussed in detail on Thursday’s meeting  going to be held at Nepal Rastra Bank.’ added Mr Agrawal. Source: Rajdhani