Investor groups have submitted a 23-point demand to the task force formed to improve Nepal stock market. The task force was created by the Ministry of Finance and is led by Rupesh KC, the acting executive director of the Securities Board of Nepal (SEBON).
The joint memorandum was submitted by Share Investors Association Nepal, Nepal Capital Market Investors Association, and Independent Capital Market Investors Association. They said these changes are necessary to make the market fair, transparent, and more investor-friendly.
The 23 demands from investors are:
- Remove the current Rs 25 crore loan limit for individuals.
- Adjust capital gains tax to 3% for long-term investors and 5% for short-term investors.
- Make capital gains tax a final tax to remove confusion.
- Allow banks and financial institutions to freely buy and sell shares in the secondary market.
- Revise transaction fees and remove the double commission system, keeping only a single commission.
- End unnecessary order splitting that raises costs, and apply one-time commission based on total daily trades.
- Cancel the extra 5% tax on cash and bonus dividends.
- Remove the 25% dividend cap on microfinance institutions, allowing payouts based on actual profit and financial strength.
- Expand broker services to all 77 districts of Nepal.
- Replace the current NEPSE trading system with a modern, internationally trusted one, and restructure NEPSE.
- Introduce a new stock exchange to boost competition, transparency, and service quality.
- Quickly implement SME share trading.
- Launch modern tools such as options, futures, intraday trading, and short selling.
- Provide investors with advance notice and enough time before introducing market-changing policies.
- Fully implement digital KYC and end physical KYC, without making national ID compulsory.
- Set clear standards for research and analysis, and prevent officials from making negative remarks without proper study.
- Ensure that policies from Nepal Rastra Bank and regulators are long-term and stable.
- Create a stable policy for loans against shares using indicators like P/E ratio, book value, and EPS.
- Remove legal barriers for Non-Resident Nepalis (NRNs) to invest and take back profits easily.
- Give SEBON full autonomy, authority, and resources to be a strong and modern regulator.
- Make companies responsible for paying tax on bonus shares, and ensure pledged shares receive dividends directly in the shareholder’s bank account.
- Control misleading analysis or fake information about listed companies on social media with strict laws and penalties.
- Allow previously listed investment companies to re-enter secondary market trading under SEBON’s guidance.
Investor groups believe these reforms will make Nepal’s capital market more transparent, competitive, and attractive for both local and foreign investors.
