Government rolls out sweeping capital market reform plan
Summary
The government has unveiled a 21-point plan to revive Nepal’s capital market, including IPO incentives, stock exchange restructuring, new bond-market rules and tax changes. The reform package also opens the secondary securities market to non-resident Nepalis and expands opportunities for long-term investment.
Key Points
- The finance ministry has issued a 21-point capital market reform plan after flood damage added pressure on the economy.
- The plan includes IPO incentives, new market infrastructure, restructuring of the Nepal Stock Exchange and broader use of financial instruments such as bonds and mutual funds.
- Legal changes will enable margin lending, intraday trading, securities lending and borrowing, short selling and other market reforms.
- The government also wants to attract non-resident Nepalis and institutional investors while revising capital gains tax to encourage long-term investment.
