8 million Demat accounts later, Nepal’s stock market is still missing the tools of a modern market
Summary
Nepal’s stock market has reached over 8 million Demat accounts but faces challenges like lack of diverse trading instruments and outdated regulations hindering market maturity.
Key Points
- Nepal’s total Demat accounts have reached over 8 million, indicating increased retail participation.
- The Nepal Stock Exchange remains reliant on equity-only trading without complex financial instruments.
- The mandatory 10-kitta allotment policy is criticized for discouraging institutional investment and limiting market growth.
- Regulatory and infrastructure challenges, including centralized market services and lack of secondary government debt trading, hinder market development.
