A study committee formed to propose improvements and restructuring measures for the Nepal Stock Exchange (Nepse) has submitted its report to the Ministry of Finance. Led by Prakash Jung Thapa, the committee handed over the report to Finance Minister Rameshwar Khanal on Monday, outlining several recommendations for Nepse’s reform.
The committee’s member secretary is Sharad Niraula, Deputy Secretary at the Ministry of Finance. Other members include Murahari Parajuli, spokesperson of Nepse; Subhash Chandra Ghimire, Director of Nepal Rastra Bank; Rupesh KC, Deputy Executive Director of the Securities Board of Nepal (SEBON); and Neeraj Giri, former Executive Director of SEBON, serving as an expert member.
The government had tasked the committee with submitting suggestions within 50 days. Within this timeframe, the committee prepared a report highlighting reforms that could be implemented immediately, in the medium term, and over the long term.
A key recommendation in the report is to increase Nepse’s current paid-up capital from Rs. 1 billion to Rs. 3 billion. To achieve this, the committee suggested selling 30% of shares through an IPO to the public, attracting foreign strategic partners, and raising additional capital from domestic institutional investors. The report also noted that stock market reform models adopted by India, Pakistan, and Bangladesh could be applied in Nepal.
Currently, the largest shareholder in Nepse is the Government of Nepal, holding around 59% of shares, while the remainder is held by institutions such as Nepal Rastra Bank, Rastriya Banijya Bank, and the Employees Provident Fund. The committee emphasized transforming Nepse from a government-controlled entity into a professional, technology-driven, and competitive institution, improving workforce capacity, and speeding up decision-making processes.
According to Ministry of Finance sources, Minister Khanal will review the report in detail before deciding which recommendations to implement immediately. The ministry plans to make the report public after completing its review.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
