Securities Board Recommendations in the Budget: Restructuring of New Stock Exchange and CDS

"Securities trading will be further increased by making the securities market modern, competitive and equipped with facilities in accordance with international systems and technologies," said the suggestion given by the board to the ministry, "According to which, in order to provide investment protection for the investors of the securities market, the secondary market operating company and the central deposit service provider company of the securities with private sector investments Structural reforms will be done. In view of the role of the capital market in the development and expansion of the overall economy, initiatives will be taken for the construction of the Securities Board's office building to effectively conduct regulation and supervision work in accordance with international values ​​and standards. is mentioned. The board also suggests that necessary additional arrangements should be made including amendments to the existing legal system to open the second market of the securities market to non-resident Nepalis, in order to increase the dynamism and stability of the market by introducing skilled and experienced investors who are able to invest in large quantities in the capital market of Nepal.

"Necessary policy and legal arrangements for the mobilization of green finance and infrastructure construction finance will be made to facilitate capital mobilization by public issuance of green bonds and energy bonds." A capital market training institute will be established.'' The board claims that by increasing the effectiveness of regulation, operation, supervision, research and law enforcement, the market will be made clean, transparent and reliable, and the effectiveness of long-term capital mobilization in the economy will be increased.

Opening the secondary market to non-resident Nepalis and increasing the stability of the capital market by increasing institutional involvement in the market and the barter market will be put into operation. Although the government includes this issue in the budget every year, no commodity exchange company is operating legally since August 074 due to non-license by the Securities Board. "Investors will be encouraged to make long-term investments by making necessary revisions in the rate of capital gains tax on short-term and long-term investments based on the time frame of the investment," the board's suggestion said, "to promote specialized investment funds that are registered and operating in the Nepal Securities Board, arrangements will be made for non-double taxation of its income."  ;

The Foreign Investment and Technology Transfer Act, 2075 will be amended to facilitate foreign investment in Nepal through a specialized investment fund. The board has also suggested that the tax on the interest income of the bond should be calculated based on the period held by the beneficiary and the accrued interest income of that period, and the amount calculated in that way can be adjusted later after the interest is received. The board has also recommended that the shareholders of the organizations involved in the merger and acquisition should not be charged capital gains tax if they sell the shares purchased before the merger and acquisition within two years of the completion of the merger and acquisition.