See the suggestions provided by the task force; Suggestions include decreased weighted risk for share loans and restriction on issue of IPO for Grade 4 and higher rated companies

The task force created for the improvement of financial market and capital market has submitted its report on Wednesday. The Ministry of Finance will be sending the suggestions to the respective bodies for implementation as soon as possible.

The major suggestions included in the report are:

1. To make the online system fully operational within one month by integrating it with the Central Depository System and the banking system
2. Adoption of T plus 1 method of clearance
3. Considering Margin Loan and Share mortgage loan as different terms and decreasing the Weighted Risk of Share loan to 100% from 150%
4. Provision for Margin Loan through brokers and Share loans through banks
5. To maintain limit of share loan as 65%
6. Increasing the loan capacity to 40% of the core capital from previous 25%
7. Removing margin call in case of price adjustment due to rights and bonus shares
8. Decreasing broker commission
9. Decreasing capital gain tax while making provision for short term and long term capital gain tax
10. Changing the current circuit breaker method
11. Instant operation of Settlement Guarantee Fund
12. Providing broker license to commercial banks
13. To maintain adequate provision for the broker firms to be acquired banks and for merger of the broker firms
14. Inflow of Non Residing Nepalese (NRN) and foreign companies in the stock market
15. Segregation of funds for Investors Awareness Programmes
16. To make proper regulations for controlling the insider trading
17. Establishment of OTC market for the companies with paid up value below Rs 10 crore
18. Establishment of separate regulatory body for the regulation of real sector companies
19. Increasing the locking period for the promoter shares of real sector companies
20. Restricting the companies with Grade 4 or above rating from issuing public shares
21. Restricting the companies to issue FPO for price exceeding net worth
22. Restricting the real sector companies to issue shares above 2 times its net worth
23. To make it compulsory for the companies with paid up capital above Rs 1 arba to enter in the stock market
24. To create a new share structure in the NEPSE by dissolving the holding of Nepal Government and Nepal Rastra Bank