NRN investment into capital market demands more measures 25.11.10

The new budget announced for the current fiscal year has designed provisions to facilitate Non-Resident Nepalis (NRNs) to invest into the country’s capital market.
It has also proposed to establish a Credit Rating Agency to assess the financial health of the companies listed in Nepal Stock Exchange (Nepse) as well as to ensure transparency in credit flow.

Stock analysts believe that if the NRNs pour their money into the market, it will help in expansion of the market size through the process of capitalisation.

Since the issue of citizenship required for those NRNs willing to invest in the stock market is yet to resolved, it would be not rational to expect their instant investment.

Opening the avenues for attracting the bucks of such Nepalis into the capital market is not only sufficient, according to them. The government should also come up with necessary measures to ensure good return of the investment.

The regulation of commodity transaction, which was supposed to take shape through the budget of last year, is yet to see the light of the day.

Even though the new budget has talked about the merger of companies, it is mum over the establishment of stock exchange by private sector and encouraging investment in mutual fund.

This has somewhat dispirited the potential investors.
nepalnews.com

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