Market Reaction
Investor optimism strengthened in Nepal’s stock market after the Rastriya Swatantra Party (RSP) moved close to securing a two-thirds majority in Parliament when both direct and proportional representation seats are combined. The positive political outlook contributed to strong buying pressure in the market.
The Nepal Stock Exchange (NEPSE) index triggered its first positive circuit breaker shortly after trading began, leading to a 20-minute trading halt. When the market reopened, the index continued to climb rapidly, triggering a second circuit breaker, after which trading was suspended for another 40 minutes.
Following the circuit breakers, the NEPSE index increased by 135.72 points, reaching 2,848.22 points, reflecting strong investor enthusiasm.
Capital Market Reform Commitments
In its election manifesto released before the polls, the Rastriya Swatantra Party (RSP) announced several policy commitments aimed at promoting Nepal’s capital market. The party pledged to protect investors’ investments, restructure the Nepal Stock Exchange (NEPSE), and implement a zero-tolerance policy against insider trading and market manipulation.
The manifesto also highlights plans to make the capital market more transparent, secure, and investment-friendly by introducing regulatory reforms, strengthening investor protection mechanisms, and adopting technology-friendly trading systems. The party has also proposed restructuring the Securities Board of Nepal (SEBON) to enhance its manpower, operational capacity, and institutional autonomy.
IPO and Listing Reforms
The party has also proposed improvements in the Initial Public Offering (IPO) system. These include reforms to ensure fair distribution of IPO shares, improvements in the book building process, and measures to ensure that companies are listed on the stock exchange in a timely manner.
These reforms are aimed at increasing fairness and efficiency in Nepal’s primary capital market.
Institutional Restructuring and Market Infrastructure
The manifesto also proposes restructuring key market institutions including the Nepal Stock Exchange (NEPSE) and CDS and Clearing Limited (CDSC). The plan aims to increase private sector share participation and develop competitive depository services within the market infrastructure.
Introduction of Advanced Financial Instruments
The Rastriya Swatantra Party has also proposed introducing advanced financial instruments in phases. These include intraday trading, short selling, futures, and options. The party has stated that these measures are part of its broader plan to develop NEPSE into a market aligned with international standards.
Tax Policy and Market Expansion
According to the manifesto, the party also plans to introduce investor-friendly capital market tax policies, allow Non-Resident Nepalis (NRNs) to participate in share trading, and launch a commodity market in Nepal.
These steps are expected to broaden market participation and expand the country’s financial markets.
Institutional Investors and Bond Market Development
To strengthen the capital market, the party has proposed encouraging pension funds, insurance companies, and mutual funds to actively invest in the market. The manifesto also outlines plans to promote the bond market and mobilize long-term investment for development projects through infrastructure bonds.
Investor Education
The party has also committed to protecting the interests of small investors by conducting nationwide financial literacy campaigns to improve public awareness and understanding of the capital market.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
