What Are The List Of Demands Submitted By Group Of Shareholders To SEBON For Capital Market Reform?

On Monday, shareholders who have taken part in the memorandum with various demands for capital market reform have submitted their demands to the Securities Exchange Board of Nepal (SEBON). Before handing over the memorandum, the share investors had surrounded the office of the SEBON at 11 am and persuaded the government to ignore the sensitivities of the capital market and the investment of millions of investors.

Here's the list of demands submitted to SEBON:

• The remaining 58 issues, which were indicated by the former UML administration 3.5 years ago and the current finance minister two months ago, must be accomplished as soon as possible.

• Banijya Bank's subsidiary firm and other institutional public corporations shall have Rs. 1 Arba share capital and provide them broker license.

• Within two years, it is important to enhance the paid-up capital of existing brokers by classifying them as commission brokers or full brokers and increasing their paid-up capital to Rs. 50 crores for commission brokers and Rs. 1 arba for full brokers.

• Brokers branch growth and the functioning of TMS formed by them should receive immediate permission.

• Non-resident Nepalis should have quick access to invest in the capital market soonest possible.

• It should be illegal for government ministers, political party leaders, and public officials to make positive or negative statements about the stock market.

• NEPSE's government ownership should be quickly disinvested, and strategic partners should be brought in, as well as institutional strengthening.

• SME platforms for small publicly traded companies should be set up quickly, and the circuit breaker mechanism for small and new businesses should be altered. NIFRA and commercial banks should also be left open.

• A competitive commission rate should be established by maintaining the top point of broker commission while leaving the lower point open, as well as reducing additional fees spent in share trading.

• Only 3% of capital gains tax should be deducted for long-term investors.

• The bank account, beneficiary account, and transaction account should all be linked together. When purchasing shares, the bank account and broker margin options should be set up, and in the case of purchases made with the bank's option, the money should be automatically withheld and withdrawn to the broker's account during clearing.

• Money and shares should be credited to the investor's account on the same day that the CDSC purchase and sale of shares is completed, and the tax deduction should be credited straight to the tax office account in the name of the investor with a PAN number.

• In the stock market, sophisticated technology such as derivatives, futures, and intraday should be used.

• Insurance companies, NIFRA, the Development Bank and Finance, the Employees Provident Fund, the Social Security Fund, and others should be required to operate mutual funds through subsidiaries with 70% of their investment, and non-resident Nepalis should only be allowed to invest in mutual funds for the first year.

• The NRB quickly establish Rs 10 Arba as a fund and begin trading margins through brokers. The system must be properly implemented.

• Enforce the requirement that only Nepal Securities Board-approved specialists can provide public analyses on sensitive matters including the stock market, company status, share price, and Nepse indicators.

• As soon as the merging firms conclude a merger agreement, the swap ratio should be set and share trading should begin with adjustments within one week.

• Borrowers who took share loans of Rs. 12 crores or more and whose loan term has expired or is about to expire should be allowed an extension to pay the interest till the end of Ashad.

• Policy and laws impacting the capital market and share price should only be implemented in such a way that investors can plan for at least 6 months ahead of time.