KATHMANDU, July 10: Rastriya Prajatantra Party (RPP) Chief Whip Gyanendra Shahi has said that allowing the private sector to open a new stock exchange immediately would be just another way to deceive the public.
Speaking during the Finance Committee meeting on Thursday, Shahi, who is also the party’s spokesperson, argued that there is no need for a new stock exchange. Instead, he suggested enhancing the quality and efficiency of the existing Securities Board of Nepal (SEBON).
Pointing to current problems and distortions in the capital market, Shahi said there is no justification for launching a new stock exchange unless the existing regulatory body and market structure are first strengthened. He warned that doing so would serve the interests of a few individuals or groups and increase risks for general investors.
Shahi stressed that issues such as market opacity, manipulation and lack of effective regulation must be addressed before opening a new exchange. He emphasized the need to strengthen the regulatory body's capacity to reduce irregularities.