Members of Parliament have demanded a clear action plan from the Securities Board of Nepal to bring reforms and long-term strategies for the capital market.
Members of the Finance Committee under the House of Representatives have asked the Securities Board of Nepal (SEBON) to show a clear plan. They want to see improvements in market reforms, attracting foreign investment, corporate governance, and boosting investor confidence. During meeting, MPs emphasized short selling, new financial instruments, expanding institutional investors, and coordination between banks and capital market.
Demand for New Financial Instruments and Real-time Monitoring
Rastriya Swatantra Party MP Bidushi Rana said that even though Nepal has 79 lakh Demat accounts and over 70 lakh Mero Share users, market depth and liquidity are still very limited. She asked about board’s solid strategy to increase long-term and institutional investments. She also asked for a clear timeline to start new financial tools like corporate bonds, SME exchange, Real Estate Investment Trusts (REITs), Exchange Traded Funds (ETFs), and venture capital, which have been talked about for years.
She noted that market capitalization has crossed 70.52 percent of GDP, but asked how SEBON measures the actual capital flowing into industries, energy, and productive sectors. She also asked when AI-based market surveillance, real-time monitoring, and cyber security system will be fully operational so that investors can get direct benefits. She said the capital market should not just be a platform for buying and selling shares, but an engine for economic growth.
Delays in IPOs and Lack of Investor Confidence
UML MP Dr. Pushpa Raj Kadel pointed out that there is a big delay in approving IPOs and right shares. He mentioned that hundreds of companies are currently waiting in pipeline. He said that because SEBON chairman keeps changing and there is a fear of taking risks, many decisions are pending. He also complained that corporate governance is a major issue and investors do not trust promoters, which is why money is not going into productive sectors like manufacturing.
Nepali Congress MP Narendra Kerung expressed concern that private sector and investors are losing trust in government. He said the continuous fall in stock market has created a lot of disappointment, and asked regulator to bring plans to lift up investor morale.
Liquidity Issues and Lack of Coordination
Communist Party MP Parshuram Tamang questioned why both banks and stock market are slow even when there is enough liquidity in banking system. He noted that many investors and promoters have failed in past, and asked SEBON to clarify the real challenges. He asked what is the success rate of investors because people only hear about losses, which makes foreign investors hesitate to enter.
Nepali Congress MP Khadga Bahadur Buda said that even with a stable government having nearly two-thirds majority, share market has not improved as expected. He said there is market manipulation and weak regulation, and SEBON must be strict. He also requested to run financial literacy programs in rural areas so small investors can understand technical terms.
Finance Committee Directive to Government
The Finance Committee has directed government to study all these issues raised by MPs about capital market and banking sector. The committee has asked to submit a detailed report within 10 days, separating the implementable points and policy reforms that are needed.
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.
