Stock Brokers Urge Government to Address Industry Issues

Kathmandu — The Stock Brokers’ Association of Nepal has formally drawn the attention of the Finance Minister, urging the government to resolve structural and policy-related issues seen in the capital market. In a letter addressed to the Ministry of Finance in Singha Durbar, the association stated that meaningful market reform would not be possible unless the problems faced by securities brokers are addressed.According to the association, Nepal’s capital market currently includes around 7.6 million investors and 92 brokerage firms. While the formation of a new government has created fresh optimism in the market, SBAN noted that the long-standing challenges faced by brokers and investors still persist. It emphasized that despite these difficulties, market participants have continued to fulfill their responsibilities toward the secondary market, and now sustainable solutions through policy reforms are necessary.SBAN expressed dissatisfaction that the recommendations provided by the Capital Market Reform Taskforce have yet to be implemented. It urged the government to promptly execute those recommendations and called for policies that allow banks and financial institutions to enter and exit the capital market more easily. The association also demanded a review of the current rule that restricts the sale of purchased shares for six months.Furthermore, the association highlighted the need to allow foreign investors and non-resident Nepalis (NRNs) to participate more easily in Nepal’s capital market. It also suggested clarifying capital gains tax as a final tax and creating an environment where government funds, held under various schemes, can be invested in the secondary market to boost investor confidence.Pointing out issues in the securities transfer system, SBAN stated that investors are facing losses due to the existing close-out provisions when transfers fail. It urged reforms in this mechanism and called for the immediate implementation of the Settlement Guarantee Fund to ensure market stability and trust. Although the legal framework for the fund was introduced years ago, it has yet to be put into operation.SBAN expressed confidence that addressing these issues would lead to overall improvement in the capital market, strengthen investor sentiment, and contribute to the sustainable development of Nepal’s financial sector.