Kathmandu
Chairman of Nepal Chamber of Commerce Kamlesh Kumar Agrawal has said that Nepal’s capital market should be developed not only as a medium of share and securities trading but also as a major medium for mobilizing long-term capital for production, infrastructure, employment and economic growth.
Addressing the ‘Nepal Capital Market Discourse-2026’ organized by BankingNews. com and sponsored by NASA Securities, Chairman Agrawal said that there is a need to gradually transform the economy from ‘bank-based’ to ‘market-based financing’. He said, “I would like to express the view that the capital market should be developed as a major medium for mobilizing long-term capital for production, infrastructure, employment and economic growth, not just through the trading of shares and securities.” The need of the hour is to gradually transform the economy dependent only on the banking system from ‘bank-based’ to ‘market-based financing’. The capital market can play the expected role in Nepal’s economic transformation only if the private sector can be easily provided with the long-term capital required for production and employment expansion. He said that the capital market can play the expected role in Nepal’s economic transformation only if the long-term capital required for the expansion of production and employment can be easily made available to the private sector.
Agarwal said that in the past, speculative trading in Nepal’s stock market has been promoted due to the lack of visionary policies. He said that the double ISIN system especially in the shares of banks and financial institutions has created a huge difference in the price of the same share in the market.
“Same share, same return, but due to double pricing, there was a difference of up to 50 percent in the price of both. This created confusion and distrust among investors and increased confusion in the actual market valuation,” he said.
He said that although the efforts to remove the double ISIN were made by the Nepal Rastra Bank in the past, it could not be implemented as it was seen to have a direct impact on the general investors.
Former Prime Minister Dr. Referring to Baburam Bhattarai saying that Nepal’s capital market should not be made like a gambling house, Agrawal said that the same share should not be divided into real return based price and speculative price due to policy intervention.
He welcomed that the Securities Board of Nepal (SEBON) is preparing to introduce a single ISIN number. He said that this will help in building a healthy, transparent and real value-based capital market in the coming days. He said that an environment should be created to determine the price of the shares on the basis of the company’s management capacity, long-term plan and future returns.
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