.jpg)
KATHMANDU: Dhitopatra Brokers Association Nepal (DBAN) President Sagar Dhakal has said the Unified Directives, 2079 announced by Nepal Rastra Bank (NRB) last week will help to make the capital market viable to some extent.
"The Unified Directives has increased the limit of Rs 120 million for share securities which shows that the problems of investors have been addressed to some extent," Dhakal said at a programme organised by DBAN.
He mentioned that there is an inter-relationship between the stock market and the real estate business in Nepal and said NRB's policy of increasing the limit of taking loans with real estate mortgages will help to make the overall economy viable. Likewise, the central bank has said the interest rate difference between loans and mortgages of the same nature should not be more than 2 percentage points. "Previously, according to NRB's policy, banks were charging interest by varying up to 5 percentage points on loans of the same nature," Dhakal added.
The DBAN President opined that this policy would reduce the interest on the loan that will flow into the stock market in the coming days. He also expressed that the market will develop and grow if we can move forward with positive thinking instead of opposing the regulator for capital market reform.
Dhakal argued that the negative message has been sent out due to the high supply in the market. "According to the theory of economics, the law of supply and demand should be applied to accelerate the market," he said, "but recently, as the IPO came at a high rate, the supply increased which had a negative impact on the market." He argued that the regulatory body should pay attention to increasing supply as well as demand.
Similarly, he argued that there is no alternative to the development and expansion of the capital market as long-term management of capital required for the operation of small startups and construction of large-scale infrastructure and attracting domestic and foreign capital can be done easily through the capital market.
As many Nepalis are now involved in the stock market, there is no choice but to spread the positive message of the future and lead it towards improvement, Dhakal said.
The DBAN President stressed bringing policies related to intra-day trading and margin trading. He opined that the settlement fund should be brought immediately.
