Three major investors' associations of Nepal have put forth an 8-point demand from the government for the development and reform of the capital market. The investors have drawn the attention of the government to boost the morale of the investors and to prevent the capital market from collapse.

The associations have expressed dissatisfaction that the government's latest action plan has not included capital market reform plans. They have strongly urged the government to implement the following 8-suggestions immediatley.

1. They have demanded the formation of an independent and high-level investigation commission to investigate in to the financial irregularities and the massive policy scams seen in the IPO issuance taking place in the Securities Board of Nepal (SEBON) for the past three to four years. They are adamant that action should be taken against guilty officials and employees.

2. They have demanded to implement the directive on International Securities Identification Number (ISIN) prepared to distinguish promoter and general shareholders which has been stalled at the SEBON for the past five months.

3. They have demanded to pave a way for non-resident Nepalese (NRN) to invest in the secondary market without any condition to bring investment of Nepalis living abroad back home. 

4. They have demanded to ban companies with a net worth of less than Rs 100 from issuing IPOs through premium or book building method. They say that in order to stop companies from cheating the general public, companies with a net worth of Rs 70 to Rs 80 should not be allowed to issue IPOs at Rs 100.

5. In order to strengthen the companies, it has been demanded that the promoters' stake should be at least 30 percent and a provision should be made to gradually open the lock-in period only after 3 years of IPO issuance.

6. They have demanded that  investment should be considered as the main qualification for becoming a director from general investors and the directors should be made more accountable to the investors.

7. They have demanded that the opinion of the investors should be taken while formulating the rules by SEBON, NEPSE and CDSC as well as the representatives of the investors should be mandatorily included in the board of directors of these bodies.

8. They have demanded to immediately implement the report of the task force for restructuring the Nepal Stock Exchange and make the market competitive at the international level.