Capital Market Strengthening and Revival Action Plan Welcomed - Chairman Dhakal
Sagar Dhakal, Chairman of the Stock Brokers Association of Nepal, has welcomed the government's 'Capital Market Strengthening and Revival Action Plan, 2083', calling it an important policy initiative for structural reform, investor protection, and long-term development. He expressed confidence that timely implementation of the plan's reforms will enhance market liquidity, strengthen investor confidence, and make the capital market's role in economic development more effective.
Sagar Dhakal, Chairman of the Stock Brokers Association of Nepal (SBAN), has welcomed the 'Capital Market Strengthening and Revival Action Plan, 2083' unveiled by the Honorable Finance Minister of the Government of Nepal. He described the action plan as an important policy initiative for structural reform of Nepal's capital market, investor protection, and long-term development.
Highlighting the key provisions included in the action plan, Dhakal expressed confidence that they will help make the market more transparent, competitive, and investor-friendly. The main points of the action plan are as follows:
- Implementing an IPO Price Discovery system
- Implementing Margin Lending and Short Selling
- Developing the Corporate Bond Market
- Providing Non-Resident Nepalis (NRNs) with opportunities to invest in the secondary market
- Expanding the participation of institutional investors
- Modernizing NEPSE, CDSC, and the securities brokerage business
He also welcomed the capital gains tax arrangement introduced to encourage long-term investment. Under this arrangement, capital gains on securities held for more than 365 days are taxed at 3.75 percent, while investments held for 365 days or less are taxed at 5 percent. According to him, this will promote a long-term investment culture and contribute to market stability, enhanced investor confidence, and the sustainable development of the capital market.
Dhakal expressed confidence that if the reforms announced by the government are implemented in a timely and effective manner, investor confidence in the capital market will be further strengthened, market liquidity will increase, and the capital market's role in economic development will become even more effective. He also expressed gratitude to the Honorable Finance Minister, the Ministry of Finance, and related agencies for their commitment to capital market reform, stating that the Stock Brokers Association of Nepal is committed to cooperating as necessary with the government and regulatory bodies for the successful implementation of the action plan.