Reforms on Paper, Red on NEPSE: Why Is the Market Still Falling?
Summary
Nepal’s government, SEBON and Nepal Rastra Bank have unveiled a series of capital market reforms, but NEPSE continues to slide despite the policy push. The index has fallen from around 2,950 points to 2,613.33, highlighting the gap between regulatory changes and actual investor demand.
Key Points
- The government has announced NEPSE restructuring, new trading facilities, tax changes and legal reforms to expand capital market participation.
- SEBON and Nepal Rastra Bank have also introduced regulatory changes, including rules for margin lending and a shorter holding period for listed shares and debentures.
- Despite the reform push, NEPSE has kept falling, dropping from about 2,950 points to 2,613.33 points by September 28.
- The article says policy changes alone have not yet generated enough buying pressure, liquidity or investor confidence to lift the market sustainably.
