KATHMANDU: Rastriya Prajatantra Party (RPP) chief whip Gyanendra Shahi has opposed the idea of immediately allowing the private sector to open a new stock exchange, calling it another scheme to exploit the public.
Speaking at Thursday’s meeting of the parliamentary Finance Committee, Shahi argued that rather than establishing a second stock exchange, efforts should be focused on enhancing the quality and efficiency of the existing Securities Board of Nepal (SEBON).
He pointed out the persistent problems and distortions in the current capital market, asserting that without strengthening the existing regulatory mechanisms and market structure, there is no justification for introducing a new exchange. According to Shahi, such a move would only serve the interests of a few powerful groups and expose ordinary investors to more risk.
Shahi further highlighted the lack of transparency, market manipulation, and weak regulation in Nepal’s capital market, stating that these issues must be resolved before even considering another stock exchange.
Recalling past irregularities in the capital market, he emphasized that building SEBON’s capacity should be the top priority.
The debate over whether Nepal needs a second stock exchange has been ongoing for years, with both government and private sectors showing interest in its establishment. Proponents argue that a new exchange could break NEPSE’s monopoly, encourage competition, bring more transparency, and promote the adoption of modern technologies.
However, Shahi and other critics believe that given the limited depth and scale of Nepal’s capital market, introducing a second stock exchange at this point could fragment the market and weaken overall investment.
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