KATHMANDU: Nepal’s stock market has been steadily declining since the central bank, Nepal rastra Bank, introduced a monetary policy.
The market gauge Nepse index has declined by 770 points in four months while investors have lost about Rs 1 trillion. Not only investors but the state has lost billions.
In the first four months of the current fiscal year, the government has collected revenue of Rs. 7 billion from the stock market.
The government collected Rs 3.24 billion in July, Rs 2.61 billion in August, Rs 550 million in September and Rs 590 million in October.
After August, the stock market started fluctuating, which resulted in a decrease of Rs. 630 million in revenue.
The revenue has declined sharply in October and November. The fall in the stock market and the fall in capital gains tax have had a direct impact on revenue collection.
Similarly, the stock market has declined by 770.36 points in the last four months.
The stock market, which had reached an all-time high of 3,220.33 points in August, has dropped to 2,449.97 points by the end of December.
Investors, on the other hand, say that the government’s policy has been an obstacle to the market’s decline.
The stock market capitalization was over Rs 44 billion when the market index reached a high point.