Stock Brokers’ Association Welcomes Capital Market Reform Plan

The Stock Brokers’ Association of Nepal has expressed its support for the Capital Market Strengthening and Revival Action Plan, 2083 unveiled by the Finance Minister. Association President Sagar Dhakal said the plan could play a significant role in modernizing Nepal’s capital market and making it more transparent, competitive, and investor-friendly. The action plan includes introducing a price discovery mechanism for IPOs, implementing margin lending and short selling, developing the corporate bond market, and allowing Non-Resident Nepalis (NRNs) to participate in the secondary market. It also proposes expanding institutional investor participation and modernizing the Nepal Stock Exchange (NEPSE), CDS and Clearing Limited (CDSC), and securities brokerage services. The association has also welcomed the proposed capital gains tax structure, under which gains from securities held for more than 365 days would be taxed at 3.75%, compared with 5% for holdings of 365 days or less, saying the measure could encourage long-term investment and promote greater market stability. Dhakal said timely and effective implementation of the reforms would strengthen investor confidence, improve market liquidity, and enhance the contribution of the capital market to Nepal’s broader economic growth. The association also expressed its commitment to cooperating with the government and regulatory authorities for the successful implementation of the action plan.