Investors demand govt’s intervention to make NRB ‘responsible’ toward capital market
ShareSansar, September 9:
Nepal Investors Forum (NIF) has pointed its finger toward the regulatory bodies for the uncontrolled downfall of the market without any particular reasons.
Submitting the memorandum to the Finance Minister Ram Sharan Mahat on Friday, the NIF has drawn the attention of the finance minister to take the immediate action for the improvement of the deterioration stock market.
“Due to the Nepal Rastra Bank, the market has observed severe volatility which has created confusions and panic among the new investors. This has led to the fall down of the benchmark index by 20 percent. The capital market regulator Sebon’s weak presence and regulation has deteriorated the situation,” said Raj Kumar Timilsina, president of Nepal Investors Forum.
He also demanded the government’s direct intervention toward safeguarding the interest of the capital market investors. “The billions of the investors’ fund is in the capital market. The government intervention is urgent towards saving it,” Timilsina added.
Aatma Ram Ghimire, a leading investor and the advisor of the Forum, also urged the mutual funds to pour their money in the market to stabilize the current volatility. “Mutual funds are the market makers. Their investment is needed in the current situation,” said Ghimire. 
He is of the view that the market will revert to the bullish trend as the market fundamentals are good.
“Except the trade deficit, the macroeconomic condition is good while most of the listed companies’ are also in the position to offer good return and the political situation is also improving. Thus the market is bound to take a leap,” Ghimire said.
The investors have also come down heavily against the central bank regulator for making unnecessary meddling in the capital market.
“It make circular and later it comes up with the clarification. The top level officers’ interview sometime saying that the regulators is tightening the margin lending policy and sometime saying that the market will burst have also fuelled the fall of the index. Ministry of Finance should immediately instruct the NRB to make it responsible towards capital market,” said Timilsina.
Likewise, Narendra Sijapati, president of Stock Brokers Association of Nepal (SBAN), said that the small and new investors should not make the decision on rush.
“The strange and opposite trend among the new investors is that they rush toward the brokers counter asking them for the sell order as soon as the indicator moves toward red and place buy order within minute of the indicator heading toward green. The investors should be cautiously deal by analyzing the market rather than following the whim,” he said.
The investors have also put forth seven-point actions that should be taken immediately for the improvement of the market by the government. 
They have demanded that the state should immediately take initiative toward bringing the cement factories, hydro companies, telecomnmunication companies, Dabur Nepal, Surya Nepal, schools and other big companies into the secondary market. Likewise, it also said that the Nepse should be privatized and Sebon should be equipped with the effective and active leadership.
“Basel III should be immediately implemented to make the Nepal’s banks and financial institutions competitive with the international banks and reduce the future risks resulting from the low capital base,” reads the statement.
Likewise, investors have also stressed the need of the coordination among the regulatory bodies so that the one do not overstep other’s jurisdiction.
They have also demanded the immediate operation of the CDS and full-fledged automated trading system.
The demand also include the necessary arrangement to make the NRN and foreign investment in the Nepal’s capital market immediately.
