Bringing a strategic partner into NEPSE is the first condition for capital market reform - Chairman Regmi
Priyaraj Regmi, Chairman of the Capital Market Committee at the Federation of Nepalese Chambers of Commerce and Industry, stated that bringing a strategic partner into NEPSE is the first condition for capital market reform. In a meeting of the Finance Committee, he emphasized the need for policy clarity, strengthening the role of institutional investors, and expanding the scope of qualified institutional investors before advancing the book-building method for IPOs.
Priyaraj Regmi, Chairman of the Capital Market Committee at the Federation of Nepalese Chambers of Commerce and Industry, stated that bringing a strategic partner into the Nepal Stock Exchange (NEPSE) is the first condition for capital market reform. He made this statement during a meeting of the Finance Committee on Wednesday.
Regmi emphasized the need to strengthen policy clarity and the role of institutional investors for market reform. While acknowledging the 21-point capital market reform action plan proposed by the Ministry of Finance and the Securities Board as positive, he noted that these reform measures have arrived late, so it will take some time for a positive impact to be seen in the market.
Regmi stated that rather than advancing the book-building method for IPOs, it is necessary to expand the scope of qualified institutional investors.
- Expand the scope of institutional investors
- Reduce the institutional tax rate from 25 percent while the individual capital gains tax is 3.75 percent
- Companies issuing IPOs must clarify who their strategic partners and investors are
- When going for book-building, qualified institutional investors or book builders must check whether the project report (projection) is correct
"We are saying to increase institutional investors, but while the capital gains tax is 3.75 percent for individuals, institutions have to pay 25 percent. This must be reduced for market reform," he said. Regmi also stated that companies issuing IPOs must clarify who their strategic partners and investors are. "The purpose of issuing the IPO must be clear. When going for book-building, qualified institutional investors or book builders must check whether the project report (projection) is correct," he said.