Government Prioritizes NEPSE Restructuring Over Establishing New Stock Exchange; Focus on Alternative Financing and Asset Management

The government has prioritized the restructuring of the existing Nepal Stock Exchange (NEPSE) over establishing a new stock exchange. In the policy and program speech for the fiscal year 2082/83 presented in the Federal Parliament on Friday, President Ram Chandra Paudel announced that NEPSE will be restructured to enhance the capacity and transparency of the capital market.

The plan also includes strengthening the Securities Board of Nepal (SEBON) and formulating laws related to alternative financing and commodity exchange. President Paudel stated that new financial instruments will be introduced to attract private capital into viable public infrastructure projects.

Additionally, the government is paying attention to the growing issue of non-banking assets and bad loans in banks and financial institutions. The policy and program include a plan to establish an asset management company to address these concerns. “An asset management company will be established to manage non-banking assets and bad loans,” said President Paudel during the parliamentary address.

This policy marks a significant step toward reforming Nepal’s capital market and improving financial sector discipline. However, expectations are high that the government must now follow through with effective implementation.