Government Expresses Deep Concern Over Market Decline: Finance Minister Paudel’s Surprise Visit to NEPSE Signals Urgent Action

The government has expressed significant concern over the ongoing decline in the Nepal Stock Exchange (NEPSE) index. Following a sharp increase of over 50% after the formation of the coalition government between the Nepali Congress and the CPN-UML, the subsequent downturn since the beginning of September has raised alarms within the government.

Prime Minister KP Sharma Oli and Finance Minister Bishnu Prasad Paudel had previously highlighted the stock market's rapid growth as a vote of confidence in the new government. However, with NEPSE shedding over 400 points in the past month, Finance Minister Paudel has formally raised concerns with regulatory bodies, questioning the root cause of the downturn.

In response to the situation, Finance Minister Paudel made an unscheduled visit to NEPSE at 3 PM today. According to official NEPSE sources, the visit was motivated by the sustained market decline, which has intensified criticism from investors towards the government. The minister's visit was strategically aimed at restoring investor confidence amid the market's volatility.

During his visit, Minister Paudel held discussions with NEPSE executives regarding the sharp decline in the market. He notably questioned how the NEPSE index, which had peaked at 3,000 points, had plummeted to 2,580 points. Minister Paudel raised concerns about the spread of baseless rumors that were allegedly triggering panic among investors, contributing to the market's unjustified decline.

Minister Paudel underscored the importance of enhanced monitoring by NEPSE and regulatory bodies over social media platforms where misinformation was reportedly being disseminated to manipulate market sentiment. He emphasized that the government would take decisive action against individuals and groups found guilty of illegally influencing the stock market through these platforms.

Additionally, Minister Paudel hinted at potential reforms within NEPSE, including restructuring initiatives and the prospective issuance of Initial Public Offerings (IPOs). Following a 30-minute address to NEPSE employees, the minister observed live stock trading for 15 minutes. NEPSE officials interpreted his unexpected visit as a deliberate attempt to uplift investor morale during this challenging period.

The government’s proactive engagement reflects its commitment to stabilizing the capital market and fostering a more transparent and investor-friendly environment. Minister Paudel’s decisive actions indicate the administration’s resolve to address current market concerns while ensuring the long-term sustainability and reliability of Nepal’s stock market.