Nepali Congress Member of Parliament Khadga Bahadur Budha has expressed concern that Nepal’s capital market has failed to show expected improvements despite the presence of a stable government with a near two-thirds majority.
During Wednesday’s meeting of the Finance Committee under the House of Representatives, Nepali Congress lawmaker Khadga Bahadur Budha pointed out that capital market has not improved as expected. He said this even though country now has a strong and stable government.
While speaking in a discussion with the newly appointed chairman of Securities Board of Nepal (SEBON), MP Budha said that in the past, people blamed unstable governments for bad market performance. But now, it is very worrying that market is still in a disappointing state when there is a highly stable government in power.
A Worrying Situation for the Economy
He used a popular saying that morning shows the day to describe the current state of market. He added that while we could accept that the market could not rise due to unstable governments in past, the current situation of the share market is highly disappointing even with a two-thirds majority government.
He also mentioned that most of the sectors in overall economy are not showing any excitement. In this kind of situation, both the government and regulatory bodies cannot run away from their responsibilities, he said.
Need for Stronger Regulation and Literacy
MP Budha agreed that SEBON has started some reform works, but he said there is a big need to implementing more organized, effective, and strict regulatory policies. He noted that while many companies are preparing to launch their Initial Public Offerings (IPOs), problems like market manipulation, high risks, weak supervision, and influence of interest groups are still very active.
Furthermore, he requested the board to run financial literacy programs across the country. He said that small investors living in rural areas find it very hard to understand complex technical terms. Therefore, SEBON should run awareness programs in very simple language so that normal people can easily understand them.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
