Tilak Koirala Ends Hunger Strike After 10 Days; What Are The List Of Demands SEBON Has Agreed Upon?

Fri, Jun 24, 2022 1:19 PM on National, Latest,

Since Jestha 23, Tilak Koirala, coordinator of the Capital Market Struggle Committee, has been holding protests in support of the 19-point demand. On Jestha 30, the struggle committee presented their demands to all district administration offices. In reaction to the capital market issue, Koirala had decided to go on a hunger strike in the Securities Board, Khumaltar, Lalitpur starting from Ashad 1, 2079. On the 10th day of the strike, he broke the strike by drinking juice from the hands of SEBON’s Chairman Ramesh Hamal.

Investors provided their 19-point demands for the capital market reform earlier this month. The government finally decided to address the issues after almost a month.

Here is the agreed-upon list of demands from the SEBON;

  • SEBON has clarified that they will work closely with the Ministry of Finance regarding the problems of the capital market to get the rest of the 58-issues solved, which were indicated by the former UML administration 3.5 years ago and the current finance minister two months ago.
  • The board has clarified the necessary coordination with NEPSE regarding the issuance of broker licenses to subsidiaries of commercial banks and to the institutional public companies having paid-up capital of more than Rs 1 Arba shall be given importance.
  • Additional research will also be done on full brokers and commission brokers.
  • In the past 15 months, there have been 23 locations where securities brokers have been told to set up the infrastructure for branch offices, and eight locations have received approval. Additionally, the procedure to approve 16 extra spots will start right away.
  • The process of setting aside 10% for the public eviction of employees now employed overseas is nearly complete in an effort to foster an investment environment for non-resident Nepalis in the capital market. This should come in to implementation from Shrawan 2079. 
  • In the Board's financial literacy program, special emphasis will be placed on encouraging dignitaries in public office to refrain from speaking favorably or unfavorably about the stock market. The Board will occasionally release a statement in this regard.
  • The urgent divestiture of government ownership in NEPSE, the enlistment of strategic partners, and institutional strengthening all require collaboration with the Government of Nepal and the Ministry of Finance.
  • As the SMEs Platform for the trading of securities of small and medium firms is currently operational, and technical preparations are being made in this regard, action will be taken to put it into effect by Bhadra 2079.
  • As the Board completes its study on the fees that will be levied in the stock market, it will be concluded with the proper input from all the stakeholders after receiving the report.
  • The coordination will be made with the Ministry of Finance and the Government of Nepal over the application of a 3 percent capital gains tax to long-term investors.
  • If it is technically feasible to run TMS after the Securities Trading Operations Regulations, 2075 into effect with regard to demand point 11, the relevant work will be moved ahead to include that provision.
  • To communicate with the Ministry of Finance and the Government of Nepal regarding the demand point 12 submitted to the Board.
  • The essential work will be advanced for the introduction of new tools in the stock market, Nepal Stock Exchange Ltd. as it is being studied and implemented by the government.
  • To coordinate as needed regarding the demand point number 14 with the Nepalese government, ministry of finance, Nepal Rastra Bank, and insurance committee.
  • Coordinating with Nepal Rastra Bank in relation to demand point number 15.
  • After doing the necessary research on the demand point number 16, work will move forward.
  • To clear up the misunderstanding surrounding mergers and acquisitions, a committee made up of the Nepal Rastra Bank, the Insurance Committee, and Nepse was established. The work will proceed right away in accordance with the committee's recommendations.
  • To discuss the demand point number with Nepal Rastra Bank.
  • To provide the necessary time for the investors to prepare in advance while implementing the policy rules regarding the effect of capital market and share price on the capital market and share price.