Finance Minister Dr. Swarnim Wagle Holds Key Meeting with Stock Brokers to Address Market Concerns
Finance Minister Dr. Swarnim Wagle held a crucial discussion with members of the Stock Brokers’ Association of Nepal (SBAN) on Sunday to address the recent unusual decline in Nepal’s stock market and explore measures to stabilize and improve it.
The meeting, organized at the Ministry of Finance, began at 9:45 am and lasted approximately 30 minutes, concluding at 10:15 am. During the session, SBAN officials highlighted challenges facing the securities market, including operational constraints for brokers, policy gaps, and the need to boost investor confidence.
According to the Finance Ministry, the discussion focused on strategies to improve the capital market, ensure greater transparency, and create an investor-friendly environment. Following the meeting, brokers expressed optimism that these measures could help restore market stability.
Key points raised during the discussion included:
1. Implementation of Capital Market Reform Recommendations: Brokers urged the immediate execution of suggestions made by the Capital Market Reform Taskforce to strengthen the sector.
2. Ease of Market Access for Banks and Financial Institutions: Requests were made for streamlined procedures allowing institutions to enter and exit the capital market efficiently, as current rules restrict the sale of purchased shares to a six-month holding period.
3. Access for Nepalese Citizens Abroad: Brokers emphasized the need to allow Nepali citizens living abroad to trade in the secondary market more easily.
4. Clarification on Capital Gains Tax: It was suggested that the government clearly define capital gains tax as the final tax and create mechanisms for easier investment of government funds in capital market instruments, boosting small investor morale.
5. Improvement in Securities Settlement: Brokers raised concerns about delayed settlement due to the inability of the market to fully guarantee securities transfer, urging the swift introduction of an auction market to prevent investor losses.
6. Activation of Settlement Guarantee Fund: Despite regulations formulated in 2018 and operational procedures in 2022, the Settlement Guarantee Fund has not been effectively implemented. Brokers requested that regulatory bodies issue necessary directives for immediate enforcement.
The SBAN also emphasized the importance of making the capital market more transparent and technology-driven while urging the government to play a guardian role to boost investor confidence.
The meeting comes in the wake of a 105-point drop in the stock market on Sunday, which caused concern among secondary market investors. Finance Minister Wagle acknowledged the concerns and highlighted the government’s commitment to addressing them.
Currently, Nepal’s capital market comprises approximately 76,00,000 investors and 92 registered brokers. With the new government in place, both investors and brokers are hopeful that recent initiatives and policy support will strengthen market performance and restore confidence.
This high-level dialogue signals the government’s proactive approach in addressing market volatility while laying the groundwork for long-term reforms in Nepal’s capital market.
