Prime Minister Holds One-Hour Meeting with Stock Market Stakeholders, Reassures Investors on Reforms
On Monday, the Prime Minister engaged in discussions with stakeholders of the capital market, advising investors to remain patient and not be swayed by external rumors when investing. Emphasizing that the government holds no negative stance towards the private sector, the Prime Minister reaffirmed the government’s commitment to the development of the capital market, highlighting its crucial role in employment generation and revenue contribution. Investors presented detailed suggestions on tax policy, margin lending, and technology-friendly trading improvements to the Prime Minister. July 20, Kathmandu.
Prime Minister Balendra Shah listened to concerns from stakeholders in the capital market on Monday. Seeking reasons behind low investor morale, he spent about an hour hearing them out and advised against investing based on external rumors. The meeting took place in the Prime Minister’s office and included representatives from the Securities Board, Nepal Stock Exchange, securities brokers, institutional and individual investors. Since his rise to office, the capital market has continuously declined. The Nepal Stock Exchange index had previously reached 2,982 but has recently dropped to around 2,500.
Following the discussion with the Prime Minister, the market showed signs of positive momentum. On Monday, the NEPSE index rose by 41 points. During the conversation with stakeholders, the Prime Minister clarified that the government is not opposed to the private sector. He assured that ongoing discussions aimed at the development and expansion of the stock market should help boost investor confidence. He also noted that the government remains vigilant regarding the stock market. According to him, the capital market must work towards generating employment and contributing to public revenue.
Investors proposed several measures during the meeting, including boosting investor morale, increasing demand to balance growing supply in the market, clarifying tax-related ambiguities, imposing tax liabilities only after loss adjustments, and requiring the central bank to establish regulations enabling margin lending through brokers. Sagar Dhakal, President of the Nepal Stock Broker Association, informed that a detailed discussion regarding capital market challenges took place with the Prime Minister. He stated, “The government is not negative towards the private sector and there is a shared understanding that the capital market is a major channel for mobilizing capital.”