By A Staff Reporter
Kathmandu, Mar. 3: The Ministry of Finance has directed the newly appointed chairman of the Securities Board of Nepal (SEBON) and chief executive officer of Nepal Stock Exchange Limited (NEPSE) to create environment where the manufacturing and infrastructure sector companies could raise money for their investment.
Issuing an 11-point directives to Chairman of SEBON, Ramesh Hamal and CEO of NEPSE, Krishna Bahadur Karki, Minister for Finance Janardan Sharma asked them not to work under the pressure or influence of any.

“People are investing in the capital market. Now the SEBON and NEPSE should pay attention to channelising the money to the large projects. The current need is to manage investment for the national pride projects,” he said.

The Minister also urged not to do any politics in the capital market and let it run independently. He directed them to discourage the malpractices in the market.
“No one informed me about the circular transaction, pump and dump and insider trading in the share market while I joined the office, however, I have tried to bring them into the legal jurisdiction. I hope there won’t be such malpractices in the market from now on,” he said.

The Ministry’s directive includes the issues of the entry of small investors in the capital market, protecting the small investors active in the market, giving priority to the OTC market, enhancing mutual cooperation between the SEBON and NEPSE, facilitating new companies to be listed in the stock market, increasing the capacity of the brokers, and increasing the capacity of the software.
Likewise, opening the capital market for the small companies and start-ups, developing SME and OTC market, reforming the system to allow intra-day transaction and short selling, launching automation auction, and preparing ‘sub-broker’ model are included in the directives.

The ministry also wants large cap index, mid cap index and small cap index in the share market.
Finance Secretary Madhu Kumar Marasini expressed his hope that the new leadership would lead the capital market on the path of positive development. Revenue Secretary Krishna Hari Pushkar said that the Nepal’s capital market should be competitive with the international markets.

Hamal said that he would implement programmes of financial literacy so that the investors wouldn’t be influenced by the rumours in the market.