Govt to establish new safety net for NEPSE investors
Summary
The government plans to introduce a new financial safety mechanism for NEPSE investors involving a Central Counterparty to mitigate trading risks and strengthen market regulation.
Key Points
- The government will establish a Central Counterparty (CCP) in the secondary stock market to act as intermediary between buyers and sellers.
- The Ministry of Finance has enforced the Second Five-Year Financial Sector Development Strategy to enhance investor protections and market operations.
- Measures include improving Clearing Assurance Fund management, introducing an Investor Protection Fund, and developing capital market literacy.
- The strategy addresses challenges like lack of investment instruments and risks such as insider trading and price manipulation to boost NEPSE's competitiveness.
