Discouraging IPO Fraud, Promoting NRN and Foreign Investors in Secondary Market; Stock Brokers Association Submits List of Suggestion to the Government

Wed, Apr 28, 2021 3:55 PM on Stock Market, Latest,

Stock Brokers Association of Nepal (SBAN) has presented a list of suggestions to the Finance Ministry.

The association has requested the government to provide tax concession to encourage long-term investment by categorizing the investors into short-term and long-term investors. This suggestion will certainly be hailed by those who have a longer stock holding period. Furthermore, the association has requested to encourage institutional investors through taxes to provide stability to the market by increasing the number of institutional investors. 

Among other things, the association has suggested the ministry implement a system to discourage applications made in the name of unrelated persons in Initial Public Offerings. The association also suggests implementing a policy of incentives and penalties for non-financial sector companies that have met certain criteria to be listed.

There is a peculiar suggestion from the association requesting the government to make a system to invite significant investment capital by welcoming foreign institutional investors in the secondary market. On the same thread of discussion, the association has also requested the ministry to facilitate NRNs to invest in the secondary market by allowing online opening of bank accounts and trading accounts. The association believes the country can also attract more remittance and investment funds this way.

The association has concluded its list of suggestions by appealing that the ministry establishes an official body to conduct and certify studies, research, training, investor awareness program related to the capital market.