Prime Minister Balendra Shah Holds High-Level Meeting with Capital Market Stakeholders Amid Stock Market Concerns

Prime Minister Balendra Shah on Monday held a high-level discussion with capital market stakeholders amid growing concerns over weakening investor confidence and declining sentiment in Nepal’s stock market.

The meeting, which started at 12 noon at Singha Durbar, focused on addressing challenges in the capital market and finding ways to improve investor confidence, strengthen market stability, and introduce necessary reforms.

The discussion was attended by Securities Board of Nepal (SEBON) Chairman Gopal Bhatta, Nepal Stock Exchange (NEPSE) Chairman Amrit Lamsal, Stock Brokers Association Chairman Sagar Dhakal, and market experts and investors including, Sandeep Jalan, Ambika Prasad Paudel from Nepal Life Capital Limited, Nawaraj Silwal, Sitaram Thapaliya, and Maheshwor Lal Shrestha.

During the meeting, stakeholders presented various suggestions to the Prime Minister regarding capital market reforms and measures required to rebuild investor confidence. They stressed the need to address existing market problems, strengthen demand, balance the increasing supply of shares, and increase the participation of institutional investors.

Stakeholders also urged regulatory bodies, including SEBON, NEPSE, and Nepal Rastra Bank (NRB), to work more effectively toward creating a stable and investor-friendly market environment.

Investor representative Ambika Prasad Paudel said the stakeholders discussed several issues, including improving the tax system, increasing institutional participation, and introducing reforms to make the market more sustainable.

They also suggested allowing brokers to provide margin lending services through necessary regulatory arrangements, bringing non-resident Nepali investors into the market through a fast-track process, and restructuring NEPSE with modern technology, skilled manpower, and new investment instruments.

Stakeholders further recommended improvements in SEBON’s working process, removal of the existing “10-unit share allocation policy,” and introducing IPOs through the book-building process with qualified institutional investors to promote a healthier capital market.

They also proposed introducing intraday trading to increase market volume, liquidity, and investor participation.

After the meeting, Paudel said Prime Minister Shah listened seriously to the concerns raised by stakeholders and assured them that the government would take necessary steps to improve the capital market.

According to Paudel, the Prime Minister said that some of the issues raised were already being reviewed and that further discussions would be held with regulatory bodies and market operators to implement practical solutions.

Prime Minister Shah also highlighted the importance of the capital market in mobilizing investment and supporting economic growth, emphasizing that a strong capital market should contribute to employment generation and overall economic development.

The meeting comes at a time when Nepal’s stock market has been facing pressure due to declining investor confidence, market uncertainty, and concerns over liquidity and policy issues.