KATHMANDU, May 23: The committee formed to implement the recommendations of the High-Level Economic Reform Suggestion Commission has outlined an action plan to restructure the Nepal Stock Exchange (NEPSE) within a year.
The committee's report outlines plans to restructure NEPSE to boost private sector participation and increase its capital. The High-Level Economic Reform Suggestion Commission recommended selling NEPSE shares to the private sector as part of the restructuring process.
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NEPSE management committee submitted the restructuring proposal to the Ministry of Finance in Mangsir (mid-November-mid-December 2023), after the former Finance Minister Dr Prakash Sharan Mahat requested it and expressed his commitment to the reform. However, Mahat did not act on the proposal, and his successor, Maoist leader Barshaman Pun, also showed little interest in pursuing the restructuring. Despite the delay, the government has now introduced an action plan to advance with the proposal, which has remained stalled at the Ministry for the past one and a half years.
Finance Minister Bishnu Paudel, who has held office for the past 10 months, has yet to move forward with the proposal to restructure NEPSE. The NEPSE has a paid-up capital of Rs 1 billion, with the government owning 58.66 percent of its shares. Rastriya Banijya Bank holds 11.23 percent, the Employees Provident Fund 10 percent, Nepal Rastra Bank 9.5 percent, and Laxmi Sunrise and Prabhu Bank each hold 5 percent.
