Ministry of Industry, Commerce and Supplies registers a bill in the Parliament to bring foreign investment in Nepali Stock Market

Ministry of Industry, Commerce and Supplies has prepared a bill to allow foreign investors to invest in Nepal Stock market. The proposed bill has been registered in the Federal Parliament Secretariat.

According to the proposed bill, the foreign investors can only invest in the secondary market of Nepal as institutional investors. The purpose of the condition is to ensure that the funds come via authorized channels only.

The bill states not only ways to bring in foreign investment but also means for profit repatriation, which is one of the major hassles in foreign investment. Therefore, if the repatriation is simplified then that will create a favorable investment avenue image in the foreign market.

Similarly, the bill states that the foreign investment will be approved within 15 days and if it isn't approved, then the cancellation information will be provided within 7 days.

Currently, for any foreign investment to come approval of Nepal Rastra Bank is compulsary but the bill proposes that investments upto Rs 5 arba could be approved by the Department of industry.

This bill might have some positive impact in the currently bear market.