The wait has been long; Government to now force the real sector companies to go public

On the opening note at “Capital Market Expo” held by SEBON, Finance Minister Dr. Khatiwada mentioned that the real sector companies will now be forced to come into the market.

In the last few years numerous requests have been made to the real sector companies to go public, not just requests reforms in policies were also made to make the market attractive to them. However only a handful of companies have shown interest so far.

Thus addressing the same Dr. Khatiwada stated that the process of going public will be made as easy and convenient as possible, and if that doesn’t induce voluntary efforts then they will be forcibly asked to go public.

The same was suggested by NEPSE to MoF few days ago highlighting the importance of real sector’s involvement in the market. The index of an economy’s bourse is supposed to be the mirror of entire economy’s performance, but if 81% of the market capitalization is concentrated towards banks and financial institutions this statement has little to no truth.

Inclusion of real sector companies in stock market doesn’t only give an overview of the economy, it also brings transparency in the organization. Corporate governance can be insured. Tax evasion can be minimized.

Thus based on the capital base and the years of operation, the Government is looking forward to bring real sector into the market.