SEBON Celebrates 30th Anniversary; Finance Minister Addresses Capital Market Issues

Securities Exchange Board of Nepal (SEBON) celebrates its 30^th Anniversary. While addressing the celebrations, Finance Minister Janardan Sharma,  highlighted the problems seen in the capital market.

On the 30th anniversary of the SEBON, the Ministry of Finance established a committee to address the stock market problem. The Finance Minister announced the formation of a four-member team made up of officials from the MoF, Securities Board and Nepal Rastra Bank to address the matter.

Finance Minister Sharma also stated that he intends to move forward in the next few days based on the committee's recommendations. In response to the issue of the capital market, he stated that the capital market has been prioritized in the upcoming fiscal year 2079/80 budget. He directed that progress be made toward making Nepal's stock market a reflection of the economy, and he stated that the ministry was willing to help.

He also underlined the need to strengthen regulators' ability to defend investors' interests, as well as the need to improve the reliability of automated trading systems. The committee has recommended that legal arrangements be made for non-resident Nepalis to invest in the secondary market, that a 10% share in the primary issuance of securities be reserved for Nepalis who have gone abroad for work, that a company with a capital of Rs. 1 Arba or a company making transactions of Rs. 5 Arba be formed to make public issue, and that other relevant capital reform arrangements to be made as soon as possible.

Finance Minister concluded by stating that everyone should play their role efficiently to solve the problems of insider trading, circular trading, pumping, and dumping in the market.