Joint Recommendations to Nepal Rastra Bank by Three Investor Associations for Capital Market Reform

As Nepal Rastra Bank prepares the monetary policy for the upcoming fiscal year 2082/83, three key organizations—Share Investors Association Nepal, Nepal Capital Market Investors Association, and Independent Capital Market Investors Association—have submitted a four-point joint recommendation aimed at reforming the capital market.

First, the recommendation calls for the removal of the current NPR 150 million Single Obligator limit. Second, it suggests allowing microfinance institutions the freedom to distribute dividends based on performance, lifting the existing 15% cap. Third, it recommends revising the share investment limits for banks and financial institutions in line with the Bank and Financial Institution Act (2073). Fourth, it proposes enabling Non-Resident Nepalis (NRNs) to easily repatriate profits abroad.

The memorandum notes that currently, over 6.8 million investors are involved in the capital market, with investments exceeding NPR 4.5 trillion. Additionally, as of the end of Jestha in the current fiscal year, the government has collected NPR 15.3 billion in capital gains tax.