Stakeholders Express Concern Over Capital Market Decline, Demand Regulatory Reforms
Summary
Stakeholders have voiced alarm over Nepal’s declining capital market and falling investor confidence, urging stronger regulation and policy reforms. Investor representatives told the Parliamentary Finance Committee that weak oversight, promoter share sales, and excessive bonus shares are deepening the market’s problems.
Key Points
- Stakeholders told the Parliamentary Finance Committee that the sharp fall in Nepal’s capital market and weakening investor confidence demand urgent regulatory action.
- Ghanshyam Pandey of the Nepal Shareholder Association blamed IPO farming, weak oversight, and promoter share sales after the lock-in period for the market’s decline.
- Investors called for automation in margin lending, lower broker commissions, and reforms to reduce supply pressure from bonus shares and promoter shares.
- They also pressed for stronger investor protection laws and greater participation in policy-making by investor associations.
