FNCCI, Nepal Investors Forum: Stop Unjustifiable Interference in Capital Market and Keep Authority Abuse in Check

Tue, Oct 5, 2021 3:53 PM on Latest, Stock Market, National,

Federation of Nepalese Chamber of Commerce & Industries (FNCCI) and Nepal Investors Forum have issued separate press releases expressing their attention towards the current trend of the Nepalese capital market.

In its press release, FNCCI has expressed its disapproval of the involvement of policymakers and market regulators themselves in a way that has impacted the natural trend of the capital market. While the exchange has contributed the highest revenue in its history to the government, the lack of clarity and stability in the policies has caused the market to behave unnaturally, the PR states.

Specifically, FNCCI has pointed to the regulator's interruption in the stock price of scrips listed in NEPSE, which should have been left on its own. Furthermore, the federation has also pointed towards the contraction in individual margin loan limit, the unjustifiable bar on companies to expand their capital, and unreasonable curb in investment freedom of institutional investors.

FNCCI has stated that the Federation stands for review and amendment of the hastily introduced policy changes that were brought about without prior consultation with stakeholders.

Meanwhile, Nepal Investors Forum has expressed its dissatisfaction with the ignorance of the concerned authorities at a time when the capital market has suffered down days in a row. Claiming that the capital market has provided an investment platform to citizens of all professions and income levels, the forum has submitted a list of reforms needed in the capital market.

The list includes widely-discussed topics like reduction of broker commission, expansion of brokerage services, and widely-debated topics like the scrapping of limit on margin loans.