KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
This economic summary highlights recent significant developments in Nepal’s economic and regulatory landscape.
Santosh Narayan Shrestha has been appointed as the Chairperson of the Securities Board of Nepal (SEBON), a role critical for overseeing the capital markets, following a selection process led by a committee.
Concurrently, gold prices have dropped by Rs 15,900 per tola due to the government’s decision to reduce import tax from 20% to 10%, which is expected to increase supply and stimulate demand in the market.
Meanwhile, the Nepal Stock Exchange (NEPSE) also experienced a rise of 15.83 points, closing at 2,683.24, reflecting ongoing trading activity.
In Rampur, Palpa, youth entrepreneurs are withdrawing industry registrations, citing issues with double taxation, prompting calls for reform in tax policies.
Additionally, Samling Power Company Limited is set to hold its 6th Annual General Meeting on December 17, 2024, to discuss various financial reports.
Similarly, the Honey Hunting Festival will be held from December 7 to 9 in Landruk, aiming to promote traditional honey harvesting and attract tourists while benefiting the local economy.
Santosh Narayan Shrestha appointed as Chair of SEBON
The government has appointed Santosh Narayan Shrestha as the Chairperson of the Securities Board of Nepal (SEBON).
The appointment of Shrestha marks a significant development in the country’s financial regulatory landscape.
This decision, made during a Council of Ministers meeting, follows a selection process in which a committee chaired by Shivaraj Adhikari evaluated multiple candidates, ultimately recommending Shrestha among others.
With the SEBON chair position unfilled since January 5, 2024, Shrestha’s leadership is anticipated to bring renewed focus and direction to the board, which plays a crucial role in overseeing the capital markets in Nepal.
His appointment comes at a time when the need for effective regulatory oversight and development in the securities market is increasingly critical for fostering investor confidence and ensuring market integrity.
Significant drop in gold prices as import tax reduced
The decline in gold prices by Rs 15,900 per tola on Monday, traded at Rs 151,300, marks a significant shift in the Nepali market, driven primarily by the government’s decision to reduce the import tax on gold from 20 percent to 10 percent.
This strategic move is expected to increase gold supply in the market, thus contributing to lower prices.
Silver has also seen a decrease, now priced at Rs 1,845 per tola, down from Rs 1,960.
The reduction in import taxes not only alleviates some financial pressure on consumers and investors but also potentially stimulates demand in a market that had been grappling with high prices.
As the market adjusts to these new conditions, the long-term implications for gold and silver trading in Nepal will depend on ongoing economic factors and consumer response to the lowered tax structure.
NEPSE rises by 15.83 points to close at 2,683.24
The Nepal Stock Exchange (NEPSE) on Monday increased by 15.83 points (0.59%) today, finishing at 2,683.24.
This uptick follows a decrease of 13.03 points in the last trading session. The market began at 2,682.29 and experienced fluctuations throughout the day, reaching a low of 2,661.21 and a high of 2,694.67.
Overall, the exchange recorded a turnover of Rs. 6.34 billion from the trading of 12,263,780 shares across 309 companies in 65,824 transactions.
Rising industry registration withdrawals in Palpa
Youth entrepreneurs in Rampur, Palpa, are increasingly withdrawing their industry registrations due to complaints about double taxation.
Businessman Ashok Shrestha highlighted the difficulties faced by local entrepreneurs, who must pay separate revenues to local units, cottage and small industry offices, and tax offices.
During a program marking the 10th National Industry Day, participants expressed frustration over the additional costs associated with changing their business names, often exceeding the registration fees.
They called for reforms to simplify business operations, with Bhojendra Prakash Dhakal, chairperson of the Rampur Chamber of Commerce and Industry, emphasizing the need for changes in the state’s tax and monitoring policies to better support local industrialists.
Samling Power Company to hold 6th AGM on Dec 17
Samling Power Company Limited (SPC) has announced its 6th Annual General Meeting (AGM), scheduled for December 17, 2024 in Lalitpur.
Key agenda items for the meeting include the endorsement of financial reports for the fiscal year 2080/81, approval of the auditor’s report along with profit and loss statements and cash flow reports, and the appointment of the auditor for the fiscal year 2081/82.
Additionally, there will be a discussion of miscellaneous matters.
‘Honey Hunting’ Festival in Annapurna, Kaski
The Honey Hunting Festival will take place from December 7 to 9 in Mahabhir, Landruk, Annapurna Rural Municipality-7, Kaski.
Organized by Annapurna Rural Municipality, the festival aims to attract domestic and international tourists by showcasing the traditional honey harvesting practiced in the region.
Beekeepers collect natural honey from 60 beehives located on Kotesang Bhir along the Modi River, with honey selling for Rs 3,000 per liter.
The festival not only highlights the health benefits of honey but also supports local income, as foreign tourists often enjoy the experience and extend their stays to participate in the festivities.
(Prepared by Srija Khanal)
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