अर्थ समितिको निर्देशन : पुँजी बजार सुधारको खाका १० दिनभित्र, तीन महिनाभित्र सर्ट सेलिङ कार्यान्वयन गर्ने सेबोनको तयारीFinance Committee's directive: a capital market reform blueprint within 10 days

The House of Representatives' Finance Committee has directed the government to study the capital market, the banking sector and the overall financial system, and to submit a report within 10 days. The directive appears designed to force regulators and the government to prepare a reform blueprint in a coordinated way rather than in a scattered fashion.

The committee issued the directive after Wednesday's meeting, following discussions with representatives from the Ministry of Finance, Nepal Rastra Bank, the Securities Board of Nepal (SEBON), NEPSE, CDS and Clearing, and other related bodies.

At the meeting, lawmakers pointed to a contradiction in the financial system: despite excess liquidity in the banking system, credit expansion has stalled while the capital market remains sluggish. Money piling up in the system without flowing into productive sectors has emerged as the central challenge of the moment.

The committee asked for a report that separates measures that can be implemented immediately from those requiring policy reform. It also directed a study of new instruments such as short selling and derivatives, the role of institutional investors, and coordination between the banking sector and the capital market.

The most talked-about issue at the meeting turned out to be the "10-unit" (das kitte) policy. Ministry of Finance Joint Secretary Mahesh Acharya argued that the policy has distorted the investment culture itself and needs to be reviewed. In his view, the tendency to obtain IPO shares has come to resemble "winning a lottery" rather than long-term investment.

Acharya's remark exposes a structural problem in Nepal's share market. Many small investors invest in the expectation of a short-term price rise, without studying a company's prospectus or financial condition. His analysis is that this is precisely why dissatisfaction and protests surface the moment the market falls, with the root cause being a lack of financial literacy.

As a remedy, he suggested steering small investors toward institutional investment through mutual funds rather than directly into IPOs. This is expected to diversify risk and bring greater discipline to the market.

Another significant issue was the grey list. According to Acharya, Nepal is moving toward exiting the international watchlist on money laundering, and four of the 15 action items given by the FATF have already been completed. He said the face-to-face evaluation in Malaysia in September will be decisive for Nepal.

On the capital market itself, the most concrete announcement came from SEBON Chairman Gopal Bhatta. According to him, a short-selling system that allows investors to earn returns even when the market falls will be implemented within the next three months.

Under this system, investors who anticipate a market decline can borrow shares from others and sell them, then buy them back at a lower price later and return them, profiting from the price difference. In principle, this turns both rising and falling markets into opportunities.

Bhatta's argument is that Nepali investors are dominated by a one-directional mindset that "the market must always rise," which short selling could help temper. In practice, however, it is also a risky instrument, and implementing it without adequate regulation and investor education carries an equal risk of inviting new distortions.

Overall, while the Finance Committee's 10-day deadline raises the pressure for reform, the real test will lie in implementation. Channeling liquidity into productive sectors, maturing the investment culture, and exiting the grey list, achieving all three of these goals at once will be the key measure of the days ahead.