Kathmandu. Nepal Stock Brokers Association (NEA) has announced the fiscal year 2083 (2083). It has responded positively to the budget of 84. The broker community has described the announcement of capital market reforms, technology-friendly trading system, attraction of Non-Resident Nepali investment and introduction of modern financial instruments as historic and visionary steps.
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) executive committee member and Nepal Stock Brokers Association President Sagar Dhakal said that the budget would contribute significantly to improve the capital market of Nepal and create investment-friendly environment. He said, “This year’s budget has accepted Nepal’s capital market not only as a medium of share transaction but also as a development partner of the national economy.” The government’s emphasis on modern financial instruments, investor protection and market expansion while prioritizing capital market reform is a very positive thing. ’
The budget also announced restructuring of the Nepal Stock Exchange (NEPSE), introducing intraday trading, short selling and derivative instruments in a phased manner. Chairman of Nepal Capital Chamber Sagar Dhakal expressed the belief that these provisions would take the capital market to a new height. “The introduction of internationally practice-based instruments such as intraday, short selling and derivatives will increase liquidity in the market, as well as institutional investment and market effectiveness,” he said. We expect this to make the Nepalese capital market more mature, credible and competitive. ’
Dhakal also took the issue of amendment to the legal provision for the participation of NRNs in the second market in the budget as a very important step. He said, “The size, depth and stability of the market will increase significantly if the capital, experience and trust of Nepalis around the world could be attracted to the capital market.” The participation of NRNs will strengthen the long-term investment culture. ’
Dhakal said that the decision to levy capital gains tax on the sale of shares of listed companies as the final tax would clear the confusion among the investors regarding the tax. He also welcomed the government’s zero-tolerance policy against insider trading and share cornering. “Transparency, good governance and regulatory capacity are essential to maintain the credibility of the market. The fact that the government has taken a strong policy against unregulated activities will further boost the confidence of genuine investors. ’
Also the executive committee member of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Dhakal stressed on the need of effective collaboration among private sector, government and regulators. “The main need now is the effective implementation of the budget announcement,” he said. The capital market can play a decisive role in giving a new impetus to Nepal’s economy if there is a coordinated cooperation between the capital market, the banking sector, the private sector and the government. ’
The stock broker community has expressed the belief that the budget would advance Nepal’s capital market towards modern, digital, transparent and investment-friendly direction.
