Investors Association Demands Ten Major Issues to Be Resolved by SEBON; Chairman Urges the Investors to Foster a Favorable Environment For the Stock Market

Investors' Association have brought major attention to the financial and psychological effects of the stock market on regular investors, which has been steadily diminishing for a very long period.

Despite the fact that over 55 lakh investors have lost a total of almost Rs. 15 Kharba after the all-time high market capitalization from August 18, 2021, the appropriate authorities have remained silent on the subject.

The chairman of the Securities Board-SEBON, Ramesh Hamal, has been urged to address the following investor demands during this time in order to move forward cooperatively in this challenging market environment.

1. The main demand of the investors from the Securities Board to introduce new stock exchange, stock brokers, and commodity exchanges was prevented some time ago by a petition in the Supreme Court. Now, it is important to finish the licensing process as soon as possible for brokers and commodity exchanges.
2. The broker commission rate be quickly reduced such that it does not exceed 0.15%. This will help to reduce the rising costs associated with buying and selling investor shares.
3. The current DP price is Rs. 25. This amount should be examined and kept not higher than Rs. 5.
4. By separating long-term investors from short-term investors, capital gains tax should remain at 3% for long-term investors and 5% for short-term investors.
5. Market makers, market dealers, securities traders, and quantitative investors should be encouraged to enter the market as soon as possible in order to reduce the anomalous oscillations in the secondary market.
6. Options trading future markets, intraday markets, and short sales should be implemented immediately.
7. Start digital KYC and end physical KYC.
8. The Margin Lending arrangement to be started through the broker company should be resumed immediately.
9. Since the Nepal Rastra Bank's 12 crore share loan ceiling has been established, more effort should be made to swiftly revoke the 12 crore policy.
10. To keep the weighted average rate of share loans provided by Nepal Rastra Bank from 150% to 100%, further efforts should be done as soon as possible.

Likewise, addressing the demand of investors, Ramesh Hamal held a press conference on Monday afternoon to respond to the issues raised by the Investors Association.

After the Supreme Court dismissed the petition by opening the license of a broker, stock exchange, and commodity exchange, investors came to meet the board chairman.

Chairman Hamal urged on the investors to foster a favorable environment for the market while also informing them that he will reserve his comments until he has heard the entire text of the judgment from the supreme court.

"We will work along with the Nepal Rastra Bank to resolve this matter. Additionally, the finance minister is also positive regarding the reform of stock market”, he added.