Dr. Yuba Raj Khatiwada said “we need to make both primary and secondary capital market strong for efficient growth”. Know all the details of his speech 

Today, the Finance Minister, Dr.Yuba Raj Khatiwada was invited as a Chief Guest on the 26^th anniversary ceremony organized by SEBON.

In the event, F.M addressed a speech majorly on capital market:

He said “Banking, finance and insurance sector are regulated by different bodies, we could see they are progressing and regulated sector usually progress. Regulator and operator should maintain a distance for the beneficiary of economy”

He added “We want our capital market to be efficient and stable, sometimes the lay investors fail to gather the important information and sometimes they interpret information in wrong way. As a result they may feel that the market is operated by some unknown forces and gets discouraged. To build the confidence of the investors, SEBON and other regulatory body should act with more responsibility. SEBON should strictly and consistently check, unfair means of trading. ”

He said “We need to upgrade CDS system and have to make it more reliable and government is planning to issue bonds (mid-term and long term) in secondary market”.

He added “We don’t see requirement to push remittance limit, as it cannot be long-term income source as well as we could not finance long-term project on the basis of remittance amount. As we were talking about building a self-sufficient economy we need to create opportunities within the country”

He said “Now the pension funds, EPF and other funds are allowed to invest in capital market.  For the investor with low risk appetite and low investment knowledge, we need to form more mutual funds.” He further added “National saving of the country is around Rs 4-4.5 Kharba per year and most of the saving goes to financial institutions and savings of capital market investors is comparatively very low. In this situation there is possibility of IPO to be under-subscribed, which can be a worst thing for the capital market, so as to prevent this, we need to create a sound and secure market environment for investors. We need to make both primary and secondary market strong for efficient growth and extension. The capital market should reach to all the investors across the country.”

He said “Everyone should follow the rules & regulation; we don’t have any provision for the violation of the law; at any cost we have to follow it. If there are rules, which are not practical then we can discuss it. If it won’t get solved at the ground level then you can take it, even to the Prime Minister but imposed rules has to be followed”

His few words on commodity market are “Commodity market should excel and it should operate essentially.”

At last F.M finished his speech by saying “He has a meeting with PM Oli, to discuss on operation of proposed budget of 2075/2076.”