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Government rolls out Capital Market Expansion Strategy

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Government rolls out Capital Market Expansion Strategy
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February 5: The government is preparing to provide sovereignty to Securities Board of Nepal (SEBON) in order to minimise problems of domestic capital market as per international practices. The Financial Sector Development Strategy 2073/74 announced by Finance Ministry mentioned about the fact. The ministry announced the strategy in a bid to address the problems related with capital market.

The government is adapting sectorial diversification promotion strategy to promote currently uniform and sluggishly developed capital market. It is also formulating improved law and regulatory practices for merchandise market. The strategy also mentions of easing investment from domestic and international institutional investors in Nepali securities market.

In a due process, the government will restructure Nepal Stock Exchange (NEPSE), encourage good governance in NEPSE and listed companies and improve legal and regulatory structure for CDS and clearing. The government, citing lack of good governance and management in NEPSE and ineffective supervision of SEBON on NEPSE and CDS due to their capital structure, has formulated the policies. It is directed toward minimising or extracting government ownership in NEPSE and CDS.

Similarly, the government is rolling out the strategy of expanding securities traders' service sector, encourage participations of general people and improve regulatory and supervisory practices of capital market. The ministry said that the Nepali capital market is still trapped in its initial phase.

After the implementation of the policy, daily transaction amount of securities market is expected to reach Rs 2 billion. Similarly, investors with D-mat account will be increased to 500,000. Moreover, participations from all sectors of the economy in the capital market will be mechanised.  

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