SEBON Chair Bhatta Says Policy and Legal Reforms Underway to Strengthen Nepal's Capital Market
SEBON Chairman Dr Gopal Prasad Bhatta told the Finance Committee of the House of Representatives that policy and legal reforms are in progress to make Nepal's capital market more organized, transparent, and investment-friendly. The Ministry of Finance outlined a 21-point action plan, while lawmakers and market stakeholders raised concerns over investor protection, broker-investor conflicts, and outdated regulations.
KATHMANDU, Sept 30 — Chairman of the Securities Board of Nepal (SEBON), Dr Gopal Prasad Bhatta, said that work is ongoing to make the capital market better managed and transparent. He expressed this view at today's meeting of the Finance Committee of the House of Representatives.
"The Board is committed and continuously working to make Nepal's capital market organized, transparent, credible, and investment-friendly," he said.
Bhatta said that discussions have been ongoing with relevant authorities and organizations regarding the issuance, listing, market operation, and regulation of securities, as well as the protection of investors' interests.
While answering questions raised by stakeholders and MPs during the meeting, the SEBON Chair said that efforts are being made to regulate the capital market through policy and legal reforms. Bhatta informed the committee that they are working on policy improvements, including various checklists and other matters to be followed when issuing the primary shares of a new company.
Related story: SEBON unveils primary capital market reform policy
Mahesh Acharya, Joint Secretary at the Ministry of Finance, said that the Ministry will regulate the capital market through a 21-point action plan.
MP Parshuram Tamang said that the government needs to keep the capital market active along with the economy, while another MP, Sushil Khadka, mentioned that because there is a large number of capital market investor associations, the real problems of the capital market have not come to light.
Hari Bahadur KC, president of the Nepal Share Market Investors Association, said that the acts and regulations related to the Securities Board need to be updated on time.
Share market investor Ajay Kumar Shrestha said that the trend of being both a stock broker and an investor in the stock market should come to an end.
Khagendra Raj Kandel, General Secretary of the Nepal Share Market Investors' Association, said that the Nepalese stock market needs to be updated in a timely manner according to the strategic plans adopted by global capital markets.
Kanchan Sapkota, the CEO of CDS & Clearing Limited, said that they are trying to organize things using information technology.
Liladhar Subedi, Officiating CEO of the Nepal Stock Exchange, said that there have been recent efforts to resolve the technical issues seen in NEPSE.
Nitesh Kumar Agrawal of the Stock Brokers Association of Nepal said that the provision of 10 unit shares in the primary market should also be made timely.