Nepal's Finance Ministry Unveils White Paper, Pledges Capital Market Reforms
Summary
Nepal's Ministry of Finance released a white paper highlighting structural issues in the capital market and pledged immediate legal reforms to enhance transparency, credibility, and stability while expanding market scope beyond financial institutions.
Key Points
- The Ministry of Finance released a white paper detailing structural problems in Nepal's capital market.
- Capital market is dominated by financial sector companies, with equities making up 99.4% of secondary market transactions.
- Market capitalization to GDP ratio declined from over 85% in 2016 to 77.7% recently.
- Government plans legal reforms to improve the market, encourage real sector companies' participation, and attract Non-Resident Nepali investment.
