Finance Minister Dr. Swarnim Wagle has said that the government will not unnecessarily mess with the stock market. During a meeting with the representatives of Nepal Stock Brokers Association here today, Minister Wagle said that the government would work for the welfare of the market.

During the, he urged investors not get panic over money laundering investigations. Nepal is currently on the grey list of the International Financial Action Task Force (FATF). He said that the government started investigating the illegal transaction to remove the country from the grey list. The Finance Minister said that innocent investors should not be afraid when guilty people are being investigated. In his words, “Instead of being panic in the short term, investors and brokers should invest with mid-term and long-term goals. The golden era has just begun.”

Minister Wagle has also pledged not to arrest any businessmen. In the meeting, the Brokers Association has put forth a 6-point demand to resolve the existing problems seen in the share market.

The main 6-point demands put forward by the association:

1. Implementation of the recommendations made by Reform Task Force: The recommendations of the task force formed at different times for capital market reform should be implemented immediately.
2. Easy Access to Banks and Financial Institutions: Provision should be made for BFIs for easy entry and exit in the capital market. Moreover, the provision that prohibits the sale of purchased shares for 6 months should be removed.
3. Entry of Non-Resident Nepalese (NRNs): Arrangements should be made immediately to allow Non-Resident Nepalese to easily trade shares in the secondary market.
4. Capital gains tax and institutional investment: The budget should clarify that capital gains tax is the final tax. At the same time, the morale of investors should be boosted by creating an environment where the money of government institutions and various funds can be invested in the secondary market.
5. Initiation of the auction market: At present, the investors have to pay a penalty due to close-out when the shares cannot be transferred. To end this and make the market more secure, the 'auction market' should be brought into operation as soon as possible.
6. Settlement Guarantee Fund: Although 'Settlement Guarantee Fund' was formulated in 2075 BS and its working procedure in 2079 BS, the Fund has not been implemented. Thus, the government brought the regulation into implementation immediately by giving directives through the regulatory body.