Government Unveils 21-Point Action Plan to Revive Nepal’s Capital Market
Summary
The Ministry of Finance has unveiled a 21-point action plan to revive Nepal’s capital market through IPO reforms, new financial instruments, NRN participation, and changes to taxation and market infrastructure. The plan also targets NEPSE restructuring, stronger institutional investment, and modernized securities regulation.
Key Points
- The Ministry of Finance introduced the “Capital Market Strengthening and Revival Action Plan, 2083” to restore investor confidence and make Nepal’s capital market more competitive and transparent.
- The plan directs SEBON and other regulators to reform IPO pricing, mutual funds, brokers, corporate bonds, margin lending, buybacks, and securities regulations.
- NEPSE restructuring, a new benchmark index, NRN access to the secondary market, and stronger CDS and clearing infrastructure are key parts of the roadmap.
- The government also proposes capital gains tax changes and a 45-day minimum holding period for bank investments to encourage long-term participation in the market.
