Kathmandu. The common stock investors expected that when the Balen government came to power, the market would boom, the Balen bull would come. The stock investors, who understood that the market would not be very happy after political stability, had quietly stamped the bell for this reason. But, as expected, the government did not bring a policy, did not show guardianship {{ . But the other truth was that as disappointed investors were when the stock market crashed, the government was also serious. For a long time, it was clear how the government was trying to raise the stock market.

Instead of talking, the Ministry of Finance had announced in the budget whatever it has been said to do by issuing the ‘Capital Market Strengthening and Revival Action Plan – 2083’ today, the market would have shown a lot of confidence by now. Sooner or later, things have come well. And from tea gossip to broker houses, there is a debate about , if the market does not rise, when will it rise?

The long-standing demand of the investors was that the government should provide policy, legal and infrastructure to make it easier for institutional investors to enter/invest in the capital market. That demand has been fulfilled. There is no doubt that the government’s strategy of developing necessary investment policies and business structures for institutional investors and increasing the participation of institutional investors in the primary market will have an impact on the direct market . Market experts believe that such a policy of the government will help to make the market more stable.

The demand of Portfolio Rebalancing has also been fulfilled. This means that institutional investors such as Employees Provident Fund, Citizen Investment Trust, Social Security Fund, Insurance Company and Fund will be encouraged to invest in the capital market. The effect of this is directly visible in the market. As a result, large institutional savings are circulated in the capital

market. Investment diversification increases, helps reduce the volatility of the market , and increases the likelihood of market demand going up.

The government has also brought a strategy to increase the capacity of CDS and Clearing. The government’s policy of increasing the institutional capacity of CDS and Clearing to effectively handle the increasing size of securities transactions will increase the settlement capacity and efficiency, while the systemic bottleneck will decrease even when there is a large transaction. Investor confidence and and will be strengthened and digital infrastructure will be ready for future capital market expansion.

The policies of PE/VC and Startup Financing will provide capital to early-stage industries and businesses. Banks reduce their dependence on loans and increase their dependence on equity financing, Startup, , {{}innovation and technology-based business. This can lead to new jobs and entrepreneurship and increase the opportunity for capital mobilization in the productive sector.The government’s policy of reviewing the capital market investment of banks and financial institutions will help in controlling the risk between banking and capital markets. It will help in strengthening financial stability.

The government’s policy of tax incentives for long-term investments is even more amazing. The government’s policy of reforming the existing tax regime to encourage long-term investment in the capital market, especially by reducing the tax rate to 3.75% and 5%, will definitely give positivity to the market. Moreover, the policy of setting off losses into profits and paying tax only on net gains has encouraged investors.

This policy of the government will increase the attractiveness of long-term investment. There is a possibility of increasing stability and confidence in the market, and if the tax incentives are effective, new investments can also come into the capital market. There is also a possibility of increasing the investment amount significantly by encouraging investors.

The policy for secondary market investment of banks and financial institutions will reduce the risk of highly speculative share trading on the bank’s balance sheet and encourage the bank’s resources to mobilize in the capital market area. It is clear that investing in the capital market can reduce the very short-term impact of the bank.

In a nutshell, the Ministry of Finance has come up with a policy to raise the stock market with maximum flexibility, the direct impact of which is clearly visible in Tuesday’s market.

Most of the demands of the investors have been addressed, but this time it has been further proved that the government is also serious about the stock market. Now what do you want to do in the market? Without forgetting that the stock market is a risky area, the stock market is beautiful if you can unlock this possibility of the stock market. (Video)

https://www. youtube. com/watch? v=5F7MqnJvmR8