Investors Demand New Securities Act Amidst Market Malgovernance
Summary
Investors have called on the government to immediately introduce a new Securities Act, saying the current two-decade-old law has enabled malgovernance, insider trading, and policy corruption in Nepal’s capital market. The Nepal Share Market Investors Association has submitted a draft law seeking stronger penalties, clearer regulator powers, and better investor protection.
Key Points
- Investors say the existing Securities Act is outdated and too weak to regulate Nepal’s expanding capital market.
- Khagendra Raj Kandel of the Nepal Share Market Investors Association urged penalties of at least three times the illegal profit and compensation for affected investors.
- The association says unclear roles between the Securities Board, NEPSE, and CDSCC have left regulators unable to act effectively.
- A draft new law has been submitted to the Finance Committee, calling for stronger oversight, cybersecurity protections, and greater accountability.
