NEPSE exploring ways to funnel in more than Rs 4 kharba from government funds into capital market
Thu, Jan 11, 2018 1:21 PM on Latest, Exclusive, Featured, Others, Stock Market,
Nepal Stock Exchange (NEPSE) has taken an initiative to circulate almost Rs 4 kharba 5 arba lying idle in the government's treasury for the expansion of capital market.
NEPSE has taken such an initiative to attract the funds parked in the government-owned funds such as Employees Provident Fund, Citizen's Investment Trust, Nepal Army’s Army Welfare Fund, Nepal Police’s Fund, Armed Police's Fund, and Social Security Fund and so on.
Since the huge fund of investable cash is lying idle in coffers of different government-owned institutions without any fruitful outcomes, NEPSE has taken such initiative. Mr. Chandra Singh Saud, the Chief Executive Officer of NEPSE informed that the matter has already been discussed with the authorities of Citizen's Investment Trust as well as Employees Provident Fund.
The Employee's Provident Fund has a consolidated fund of Rs 2 kharba 50 arba. Similarly, Citizen's Investment Trust has Rs 96 arba 43 crore by the end of Kartik of the current fiscal year. Nepal Army's Army Welfare Fund has Rs 40 arba and Social Security Fund has Rs 14 arba in their respective coffers.
Likewise, Nepal Police’s Welfare Fund has Rs 2 arba 19 crores and Armed Police’s Welfare Fund has Rs 1 arba 27 crores. Mr. Saud informed that it was their long term strategy to discuss soon with Nepal Army as well as Nepal Police to invest in the capital markets.
He said, “NEPSE has initiated the process of dialogues with the strategy to circulate the amount in the government’s fund as it leads to market expansion along with increment in investment. We’re soon going to circulate the amount of such funds for the expansion of the capital market."
The value of Nepalese capital market is around Rs 16.82 kharba. NEPSE believes that the government's consolidated funds can contribute a lot in the identification and circulation of additional sources along with the expansion of market.
NEPSE believes that circulating all the sources and funds in investment would help to achieve market expansion and market durability as it cannot be achieved from the small investors alone.
Mr. Saud also informed that they would first discuss about the advantages of entering the capital market with such government bodies and also explain them about investment diversification. He also hopes that the government bodies would actively participate in the capital market.
Likewise, NEPSE has been making efforts to create the environment for the private sectors having turnover of above Rs 50 crores to issue ordinary shares. Lately, the private sector has also shown interest to issue ordinary shares for efficient business activities.
Lately, the business organizations like Dish Home, Shivam Cement and Arghakhachi Cement are also preparing for the issuance of ordinary shares.
NEPSE has also started taking initiatives to invite the service sectors, hospitals, educational institutions, transportation companies as well as business organizations in the capital market. The investment in the service sectors, cement industry, cable car industry has been increasing lately.
According to Mr. Saud, they have taken initiative to invite the sectors in which the investment has been increasing in the capital market. He said that they are going to introduce the bodies having an annual turnover of more than Rs 50 crores into the capital market sooner or later. He also believes that such sectors will enter the share market soon.
Keeping into view that the diversification and expansion of the security market cannot be achieved through the investments of small investors alone, the regulatory bodies have been in quest of new sources of investment. Following the similar line, Nepal Telecommunications Authority (NTA) has launched a policy initiative to bring the telecommunication service providers companies not listed in the capital under the purview of public company. After the entry of such companies in service sectors in the share market, this will provide a win-win situation for both public and private sector companies. The general public can have their pie of profit in such profit making business while those companies will have enough grounds to raise capital for the expansion of their business.
The value of Nepalese capital market is around Rs 16.82 kharba. NEPSE believes that the government's consolidated funds can contribute a lot in the identification and circulation of additional sources along with the expansion of market.
NEPSE believes that circulating all the sources and funds in investment would help to achieve market expansion and market durability as it cannot be achieved from the small investors alone.
Mr. Saud also informed that they would first discuss about the advantages of entering the capital market with such government bodies and also explain them about investment diversification. He also hopes that the government bodies would actively participate in the capital market.
Likewise, NEPSE has been making efforts to create the environment for the private sectors having turnover of above Rs 50 crores to issue ordinary shares. Lately, the private sector has also shown interest to issue ordinary shares for efficient business activities.
Lately, the business organizations like Dish Home, Shivam Cement and Arghakhachi Cement are also preparing for the issuance of ordinary shares.
NEPSE has also started taking initiatives to invite the service sectors, hospitals, educational institutions, transportation companies as well as business organizations in the capital market. The investment in the service sectors, cement industry, cable car industry has been increasing lately.
According to Mr. Saud, they have taken initiative to invite the sectors in which the investment has been increasing in the capital market. He said that they are going to introduce the bodies having an annual turnover of more than Rs 50 crores into the capital market sooner or later. He also believes that such sectors will enter the share market soon.
Keeping into view that the diversification and expansion of the security market cannot be achieved through the investments of small investors alone, the regulatory bodies have been in quest of new sources of investment. Following the similar line, Nepal Telecommunications Authority (NTA) has launched a policy initiative to bring the telecommunication service providers companies not listed in the capital under the purview of public company. After the entry of such companies in service sectors in the share market, this will provide a win-win situation for both public and private sector companies. The general public can have their pie of profit in such profit making business while those companies will have enough grounds to raise capital for the expansion of their business.
