Government Announces Landmark Reforms to Modernize Nepal's Stock Market
Kathmandu — The Government of Nepal has unveiled a series of transformative reforms aimed at modernizing the country's capital market, including the introduction of intraday trading, short selling, and derivative instruments.
Finance Minister Dr. Swarnim Wagle announced the measures while presenting the national budget for Fiscal Year 2083/84 in a joint session of the Federal Parliament.
The reforms are designed to transform Nepal's capital market from a traditional investment platform into a more dynamic, technology-driven, and globally competitive financial ecosystem.
Intraday Trading to Be Introduced in Nepal
One of the most significant announcements is the introduction of intraday trading through the restructuring of the Nepal Stock Exchange (NEPSE).
Currently, investors can only sell shares after they have been settled and credited to their accounts. Under the proposed intraday trading system, investors will be able to buy and sell the same stock within a single trading day.
The new mechanism is expected to:
- Increase market liquidity
- Enhance trading activity
- Improve price discovery
- Provide more flexibility to investors
- Create opportunities for short-term profit-making and risk management
Intraday trading is widely practiced in developed stock markets and is considered a major step toward modernizing Nepal's financial sector.
Short Selling and Derivative Instruments on the Way
The government has also announced plans to introduce short selling and derivative products to the Nepali capital market.
Short selling allows investors to profit from falling stock prices, while derivatives provide sophisticated tools for hedging risk and managing investment exposure.
According to the budget, these instruments will help investors:
- Manage portfolio risk more effectively
- Benefit during both rising and falling markets
- Improve overall market efficiency
- Increase participation from institutional investors
Market experts believe the introduction of these products could significantly boost trading volumes and deepen Nepal's capital market.
Nepali Companies to Access Global Capital Markets
In another major policy shift, the government plans to allow qualified Nepali companies to access international capital markets.
Under the proposed framework, eligible companies will be able to:
- List on foreign stock exchanges
- Issue Global Depository Receipts (GDRs)
- Raise capital from international investors
- Expand their global investor base
The move is expected to improve access to financing for large Nepali corporations while increasing foreign investor interest in Nepal's economy.
Government Adopts Zero-Tolerance Policy Against Market Manipulation
To strengthen investor confidence, the government has announced a strict "zero-tolerance" approach toward capital market misconduct.
Authorities have pledged stronger enforcement against:
- Insider trading
- Share cornering
- Price manipulation
- Market abuse schemes
The budget also emphasizes strengthening the capacity of regulatory agencies to improve market supervision and investor protection.
Capital Gains Tax to Become Final Tax
The government has also introduced a major tax reform by declaring capital gains tax on listed securities as a final tax.
This change is expected to remove long-standing uncertainty surrounding the taxation of stock market profits.
Under the new system, once investors pay capital gains tax on profits from listed securities, no additional tax liability will arise from that income.
Personal Income Tax Relief for Middle-Class Citizens
The budget also includes significant relief for individual taxpayers.
The minimum taxable income threshold subject to the lowest 1% tax rate has been increased from Rs. 500,000 to Rs. 1 million.
The measure is expected to:
- Increase disposable income
- Support middle-class households
- Boost consumer spending
- Improve savings and investment capacity
A New Era for Nepal's Capital Market
The proposed reforms represent one of the most ambitious overhauls of Nepal's stock market in recent history.
By introducing intraday trading, short selling, derivatives, international listings, and stronger regulatory oversight, the government aims to create a more efficient, transparent, and globally connected capital market.
If successfully implemented, these measures could significantly increase investor participation, improve market liquidity, and position Nepal's financial sector for long-term growth.
Gold And Silver Prices Surge Sharply In Nepal
Gold and silver prices in Nepal witnessed a sharp rise on Jestha 15 as international precious metal markets continued to strengthen. The increase has impacted jewelry traders and investors closely monitoring bullion prices.
Nepal Government To Unveil Fiscal Year 2083/84 Budget Today
The Government of Nepal is set to announce the national budget for fiscal year 2083/84 today. Investors, businesses, and the general public are expecting major policy reforms, infrastructure spending plans, and tax-related announcements.
Vaidya Organization Becomes Official Distributor Of Ultraviolette Motorcycles
Vaidya Organization has been appointed as the official distributor of Ultraviolette electric motorcycles in Nepal. The partnership is expected to boost Nepal’s growing electric vehicle market with premium performance EV bikes.
Upper Trishuli-1 Hydropower Project Completes Major Construction Milestone
Upper Trishuli-1 Hydropower Project has successfully completed the installation and testing of its weir gates, marking a significant milestone in the project’s development process. The progress brings the national priority hydropower project closer to operational readiness.
Nepal Celebrates 18th Republic Day Across The Nation
Nepal celebrated its 18th Republic Day with nationwide programs, official ceremonies, and public events highlighting democratic achievements and national unity.
Latest Related News & Market Updates
Nepal Celebrates 18th Republic Day Nationwide
Nepal celebrated its 18th Republic Day with official ceremonies, parades, and public programs across the nation. Government leaders highlighted democratic achievements and national unity during the celebrations.
Nabil Bank Employee Retirement Fund To Be Managed By CIT
Nabil Bank has signed an agreement with Citizens Investment Trust for the management of employee retirement funds. The partnership aims to strengthen long-term financial security for bank employees.
Nepal Among Highest Taxed Countries For Vehicles
Nepal has been listed among the countries with the highest vehicle taxation rates in the world. High import duties and taxes continue to make automobiles significantly expensive for Nepali consumers.
NIC Asia Bank Calls 28th AGM On Jestha 18
NIC Asia Bank has announced its 28th Annual General Meeting scheduled for Jestha 18. Shareholders are expected to discuss financial performance, dividend proposals, and future strategic plans during the meeting.
STC Share Price Adjusted After Bonus Share Announcement
Salt Trading Corporation adjusted its share price after announcing a 9.50% bonus share distribution. Investors are closely monitoring the stock’s movement in the secondary market.
Kalanga Hydro IPO Closes After Strong Demand
Kalanga Hydro Limited successfully closed its IPO issue after receiving strong investor participation. Hydropower IPOs continue to attract major attention in Nepal’s capital market.
Laxmi Sunrise Capital To Lead Genesis Ventures IPO
Laxmi Sunrise Capital has been appointed as the issue manager for the upcoming IPO of Genesis Ventures. The move signals another upcoming public offering in Nepal’s growing capital market.
Nepal To Unveil Budget For Fiscal Year 2083/84
The Government of Nepal is preparing to announce the national budget for fiscal year 2083/84. Investors and businesses are expecting key policy announcements related to taxation, infrastructure, and economic reforms.
Public Holidays Announced For Bakra Eid And Republic Day
Nepal has declared public holidays for Bakra Eid and Republic Day celebrations. Government offices, banks, and financial markets will remain closed during the holidays.
Understanding NEPSE: Beginner’s Investment Guide
Nepal Stock Exchange remains the backbone of Nepal’s capital market. This beginner-friendly guide explains stock market basics, investing methods, and how new investors can start their investment journey.
Sajha Yatayat Falls Into Loss Despite Investment
Sajha Yatayat has reported financial losses despite receiving government investment and support. Rising operational costs and management challenges continue to impact public transportation services.
China Emerges As Nepal’s Largest Foreign Investor
China has become the largest foreign investor in Nepal, reflecting stronger economic ties and increasing foreign direct investment projects across multiple sectors.
CIB Requests Freeze On Shares Of 56 Individuals
The Central Investigation Bureau has requested Securities Board of Nepal to freeze shares belonging to 56 individuals under investigation. The case has increased focus on regulatory monitoring within Nepal’s stock market.
SEBON Approves IPO Issuance For 24 Companies
Securities Board of Nepal has approved IPO issuance for 24 different companies, opening the door for new investment opportunities in Nepal’s primary market.
Wealth Orbit Center Updates
Nepal Stock Market News & Updates
Get the latest stock market news, IPO updates, dividend announcements, and NEPSE analysis from Wealth Orbit Center’s dedicated Nepal stock news section.
Global Financial & Economic News
Stay updated with international finance, global markets, business trends, and economic developments from around the world.
Wealth Orbit Center Official Website
Explore financial news, investment education, stock analysis, global market coverage, and wealth-building content.
Largest Companies In USA – Live Price & Chart
Track live stock prices, charts, and market performance of the largest publicly traded companies in the United States.
Free Stock, Forex, Crypto & ETF Live Trading Charts
Access free live trading charts covering stocks, forex pairs, cryptocurrencies, ETFs, and market indices in real time.