Tax Cuts, Bank Entry, and Modernization: Key Highlights of Rauniyar’s 15-Point Suggestions to SEBON

Aimed at modernizing the capital market, boosting investor confidence, and spurring daily trading volumes to NPR 15–20 billion, the key recommendations focus on tax relief, institutional access, structural modernization, and regulatory integrity.

Allow banks and financial institutions to trade shares in the secondary market without hindrance, removing the mandatory six-month holding restriction.
Preserve the mandatory 10-unit allotment policy for Initial Public Offerings (IPOs) to support small retail investors.

Lower Capital Gains Tax (CGT) to 4% for long-term investors and 6.5% for short-term investors.
Eliminate double taxation by removing the additional 5% tax on company-distributed bonus shares and cash dividends.
Streamline trading costs by replacing the current dual commission system with a single-way fee and revising all administrative tariffs (SEBON, NEPSE, CDSC, and brokers).
Stop charging separate maximum commissions on fragmented trade orders; instead, calculate a single lump-sum daily trading fee.

Require listed companies to conduct AGMs within two months of the fiscal year-end and disburse dividends within one month following the meeting.
End the requirement for annual Demat account renewals.
Stop automatically freezing bonus shares and cash dividends on stock collateralized under 70% margin loans.

Upgrade the Trade Management System (TMS) to international standards and establish seamless payment gateways to attract Foreign Direct Investment (FDI) and Non-Resident Nepalis (NRNs).
Remove legal hurdles to streamline entry and profit repatriation for NRN investors.
Privatize and modernize Nepal Stock Exchange (NEPSE), transitioning it into a public entity.
Build protective infrastructure for small investors before introducing advanced financial instruments like futures, options, intraday trading, short selling, and Exchange-Traded Funds (ETFs).

Grant SEBON full operational autonomy and statutory authority as a modern regulatory body.
Form a dedicated joint monitoring and cybercrime prevention cell between SEBON and NEPSE to crack down on market manipulation and malicious rumors.

Tax Cuts, Bank Entry, and Modernization: Key Highlights of Rauniyar’s 15-Point Suggestions to SEBON

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