Kathmandu. Nepal Stock Brokers Association has responded positively to the budget for the fiscal year 2083/84 presented by the Government of Nepal.

The broker community has described the capital market reforms, technology-friendly trading system, attraction of non-resident Nepali investment and the introduction of modern financial instruments as historic and far-sighted steps.

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) executive committee member and Nepal Stock Brokers Association Chair Sagar Dhakal said the budget would contribute to reforms in capital market of Nepal and creating investment-friendly environment.

“This year’s budget has accepted Nepal’s capital market not only as a medium of share transaction but also as a development partner of national economy,” he said, adding that it is a very positive thing that the government has emphasized on modern financial tools, investment protection and market expansion while prioritizing capital market reform. ”

The budget has also announced restructuring of the Nepal Stock Exchange (NEPSE), introducing intraday transactions, short selling and derivative instruments in a phased manner. Chairman of Nepal Capital Chamber Sagar Dhakal expressed the belief that these provisions would take Nepal’s capital market to a new height.

“The introduction of international practice-based instruments such as intraday, short selling and derivatives will increase liquidity in the market, as well as institutional investment and market effectiveness.” We expect this to make Nepal’s capital market more mature, credible and competitive. ”

Dhakal also took the amendment to the legal provision for the participation of NRNs in the second market as a very important step in the budget.

He said, “The size, depth and stability of the market will increase significantly if the capital, experience and trust of Nepalis around the world could be attracted to Nepal’s capital market.” The participation of NRNs will strengthen the long-term investment culture. ”

Dhakal also said that the decision to make capital gains tax the final tax on the sale of shares of listed companies would clear the confusion among the investors regarding the tax.

He also welcomed the zero-tolerance policy against insider trading and share cornering by the government.

“Transparency, good governance and regulatory capacity are essential to maintain the credibility of the market. The fact that the government has taken a strong policy against unregulated activities will further boost the confidence of genuine investors. ”

Also the executive committee member of FNCCI, Dhakal underscored the need for effective collaboration among private sector, government and regulators.

“The main need now is the effective implementation of the budget announcement. The capital market can play a decisive role in giving a new impetus to Nepal’s economy if there is coordinated cooperation among the capital market, banking sector, private sector and the government. ”

The stock broker community has expressed the belief that the budget would advance Nepal’s capital market towards modern, digital, transparent and investment-friendly direction.