Non-resident Nepalis keen to invest in local bourse
The Non-Resident Nepali Association (NRNA) has shown interest to invest in the secondary market of the country if the government and other concerned authorities create a positive environment for them.
In a meeting with officials of the Securities Board of Nepal (SEBON) — the capital market regulator of the country — today, NRNA representatives expressed their interest to invest in the local bourse.
In the meeting, NRNA President Bhaban Bhatta said that if SEBON and other concerned government agencies draft the necessary legal framework to invest in the secondary market, they are ready to invest around Rs 10 billion in the secondary market.
“There are many non-resident Nepalis who are interested to invest in the Nepali stock market, however because of the legal barriers that exist they cannot do so. We have requested the officials of SEBON to take the initiative for a favourable outcome,” Bhatta stated.
“We will collect small amounts from willing members, which will add up to a significant total and invest it in the country’s capital market in the future.”
Addressing the concerns raised by the representatives of NRNA, Chairman of SEBON Rewat Bahadur Karki, said SEBON is studying the possibilities of opening the secondary market for NRNs in the near future. He also informed that SEBON has already taken some actions for the institutional reform of the capital market and it will continue to do so in the future as well.
Karki informed that the regulator has already taken some steps to draw the investment of NRNs in the capital market of the country. “We have formed a committee under the coordination of our executive director and it also comprises a representative from the Ministry of Finance. The committee will finalise the possible way to open the secondary market for NRNs,” Karki said.
He also informed that SEBON is preparing guidelines to open alternatives ways for non-resident Nepalis to invest in primary offerings, which will incorporate the issues raised by the NRNA.
Karki further added that even after numerous improvements, there are still some technical and practical problems in the secondary market and thus the reforms are an ongoing process that will continue in the future too.
Source: The Himalayan Times