Brokers urge Finance Minister to implement the remaining recommendations of the capital market reform task force at the earliest

Kathmandu. KATHMANDU: Nepal Brokers’ Association of Nepal (NBA) has demanded the immediate implementation of the remaining recommendations given by the capital market reform taskforce.

In a meeting with Finance Minister Dr Swarnim Wagle at the Ministry of Finance this morning, the Association delegation submitted a 6-point memorandum to resolve the problems seen in the capital market. The memorandum states that resolving these problems would solve the problems of the overall capital market and boost the morale of the investors in the capital market.

Here are the demands of the Brokers Association

}

We request the immediate implementation of the remaining recommendations of the Capital Market Reform Task Force.TAG_OPEN_li_20

• Provision should be implemented immediately to enable banks and financial institutions to enter and exit the capital market in an easy manner. (Currently, the purchased shares can be sold only after a period of 6 months)
• Arrangements should be made immediately for non-resident Nepali citizens to easily trade shares in the secondary market.
• It should be made clear through this budget that the capital gains tax is the final tax. In order to boost the morale of small investors in the market, an environment should be created to make it easier to invest the money in the name of various funds in the government institutions.
• In the context of the market not being able to fully guarantee the transfer of securities, the arrangement of taking the securities directly to the close-out due to the failure to sell the securities will hurt the investors, so the auction market should be started as soon as possible to resolve this.

Bylaws were formulated in 2075 BS and working procedure in 2079 BS for the use of Settlement Guarantee Fund.TAG_OPEN_li_15 We request the regulatory bodies to issue necessary directives as this procedure has not been implemented for a long time.

The memorandum states that there are new hopes and expectations among the securities brokers and investors in the market after the formation of the new government and the Finance Minister. “Till date, the securities brokers have been fulfilling their duties and responsibilities towards the secondary market despite facing many problems,” the memorandum reads.