Finance Minister Calls for Strengthening Nepal’s Capital Market Competitiveness

KATHMANDU: Finance Minister Dr. Prakash Sharan Mahat has emphasized the importance of bolstering the health and competitiveness of the capital market. Speaking at the inauguration of World Investor Week, he highlighted the need to enhance the education of investors related to the capital market. He also urged the Nepal Rastra Bank and the Securities Board of Nepal (SEBON) to intensify their regulatory efforts.

The Finance Minister expressed concerns about the current market situation, attributing some issues to excessive micro-management by regulators. He anticipates a resolution on this matter in the near future, emphasizing the imperative to make the share market healthier.

Addressing the issue of ‘insider trading,’ Mahat called on SEBON to decisively regulate and monitor it. He directed SEBON and the Nepal Stock Exchange, along with other relevant agencies, to fulfill their regulatory roles in the best interests of general investors and expand public awareness and education regarding capital markets.

He noted that the capital market has become more competitive since the issuance of new stock broker licenses, thereby ending the monopoly situation. Mahat stressed the importance of increasing financial and capital market literacy, as only a minority of individuals are knowledgeable about the share market, leaving many unaware of profitable investment opportunities.

SEBON Chairperson Ramesh Kumar Hamal highlighted the low level of financial literacy in Nepal, particularly when compared regionally. He emphasized the collective responsibility of all stakeholders in enhancing financial literacy. Hamal also acknowledged the emergence of new investment tools and the challenges posed by the revolution in the information technology sector, suggesting the need for preparedness.

As part of investor education initiatives, SEBON has introduced a chatbot based on artificial intelligence. Various programs will be organized throughout the week to celebrate World Investor Week.