Investors Submit 23-Point Demand Letter for Capital Market Reforms
Author
NEPSE TRADING
Kathmandu – Following the recent abnormal decline in the stock market, investor associations have jointly submitted a 23-point memorandum to the Capital Market Reform Taskforce formed under the coordination of the Securities Board of Nepal (SEBON). The letter highlights urgent measures needed to stabilize the market, restore investor confidence, and modernize Nepal’s capital market.
The key demands include:
Allowing banks and financial institutions to actively participate in the secondary market.
Removing the current NPR 250 million cap on personal share-backed loans (Single Obligatory).
Eliminating the 25% dividend distribution cap for microfinance institutions, enabling them to distribute dividends based on actual profit and financial strength.
Creating a transparent investment environment for Non-Resident Nepalis (NRNs) and ensuring they can repatriate profits easily.
Abolishing duplicate brokerage commission charges and introducing a unified commission system.
Upgrading the current online trading system (TMS) to an internationally recognized, tested, and trusted cross-border standard.
Establishing a competitive second stock exchange with modern, internationally benchmarked practices.
Implementing SME trading platforms, as well as introducing Option Market, Intraday Trading, and Short Sale mechanisms.
Fully enforcing Digital KYC and integrating it with the National ID system.
Strengthening SEBON as a fully autonomous and transparent regulatory authority.
Ensuring that tax on share trading is treated as a final tax to protect long-term investment.
The memorandum was signed by representatives of the Share Investors Association Nepal, Nepal Capital Market Investors Association, and Independent Capital Market Investors Association.
In their statement, the investor groups stressed:
“If regulatory reforms are implemented promptly, Nepal’s stock market will stabilize, investor confidence will be restored, and the capital market will move toward sustainable long-term growth.”
