Kathmandu. President of the Stock Brokers Association of Nepal, Sagar Dhakal, has welcomed the ‘Capital Market Strengthening and Revival Action Plan-2083’ unveiled by the Finance Minister.

KATHMANDU: The Ministry of Finance has released the ‘Capital Market Strengthening and Revival Action Plan-2083’ with a view to making the stock market stronger, modern, transparent and investment-friendly.

According to Dhakal, this is an important policy initiative for structural reform of Nepal’s capital market, protection of investors and long-term development.

Dhakal said that the government’s action plan has included the implementation of price discovery system in the IPO, implementation of margin lending and short selling, development of corporate bond market, providing investment opportunity to NRNs in the secondary market, expanding the participation of institutional investors and modernizing NEPSE, CDSC and securities broker business.

He said that the provision of 3.75 percent capital gains tax on the capital gains obtained from securities held for more than 365 days and 5 percent on the investment of 365 days or less is positive for encouraging long-term investment.

According to him, it will promote a long-term investment culture, stability in the market, enhance investor confidence and contribute to the sustainable development of the capital market.

Dhakal expressed the belief that investors’ confidence in the capital market would be further strengthened if the reforms announced by the government are implemented in a timely and effective manner.

He also said that the Stock Brokers Association of Nepal is committed to collaborate with the government and regulatory bodies for the successful implementation of the action plan.