Latest NEPSE News & Share Market Updates
NIC Asia Capital Unveils Lifetime Demat and Mero Share Services to Boost Investor Participation
NIC Asia Capital Limited, a prominent player in Nepal's capital market, has announced a series of innovative schemes for the fiscal year 2083/84, designed to significantly enhance investor convenience and broaden market participation. These initiatives, spearheaded by the company's ambitious "One Nepali, One Demat Account" campaign, introduce groundbreaking lifetime renewal options for Demat and Mero Share accounts, alongside attractive incentives for new and student investors. This strategic move underscores NIC Asia Capital's commitment to democratizing access to the stock market and fostering a more financially inclusive Nepal. At the heart of these new offerings is the introduction of a one-time lifetime renewal facility for both Demat and Mero Share accounts. Investors can now secure a lifetime Demat account renewal by paying a single fee of Rs 999, effectively eliminating the recurring annual charge of Rs 100. Similarly, a one-time payment of Rs 1,000 will grant lifetime renewal for Mero Share accounts, replacing the annual Rs 50 fee. This forward-thinking approach provides substantial long-term savings and unparalleled convenience for investors, freeing them from the hassle of annual renewals and ensuring uninterrupted access to their investment portfolios. This limited-time offer is available until the end of Shrawan 2083, urging potential beneficiaries to act promptly to capitalize on these significant cost-saving opportunities. Beyond the lifetime renewal options, NIC Asia Capital is actively working to onboard new investors into the capital market. The company is offering free Demat account opening, coupled with a full waiver on the first-year renewal fee. This incentive is accessible to accounts opened directly through NIC Asia Capital and its extensive network of branch offices. Furthermore, individuals opening accounts via NIC Asia Bank branches, particularly those utilizing the bank's designated free savings accounts, can also avail themselves of this beneficial scheme. Such initiatives are crucial for lowering the entry barrier for prospective investors, encouraging them to take their first steps into the world of stock market investments without initial financial burdens. A particularly noteworthy scheme is the "NIC Asia Student Demat Service," specifically tailored to engage the youth in capital market activities. This student-focused program provides free Demat accounts, a waiver on the first-year renewal fee, and complimentary Mero Share registration. Recognizing the importance of financial literacy and early investment habits, this initiative aims to cultivate a new generation of informed investors. By making investment tools accessible and affordable for students, NIC Asia Capital is not only expanding its client base but also contributing significantly to the nation's financial education landscape, empowering young individuals to manage their finances and participate in economic growth from an early age. In line with global digital transformation trends, NIC Asia Capital has also emphasized the online accessibility of its services. Operating under the tagline "Not in line, online," the majority of the company's offerings are now conveniently available through its official website. This digital-first approach ensures that investors can manage their Demat and Mero Share accounts, apply for IPOs, and access other crucial services from anywhere, at any time, without the need for physical visits. This commitment to digital convenience reflects a modern understanding of investor needs and positions NIC Asia Capital as a leader in leveraging technology for enhanced service delivery in the Nepali capital market. These comprehensive schemes collectively aim to streamline the investment process, reduce costs, and foster greater participation across all demographics, ultimately contributing to a more vibrant and robust Nepal Stock Exchange. For further details, interested parties can contact NIC Asia Capital directly at 9847345099 and 9848865223.
National Life Insurance Bolsters Agent Network with Grand Training and Recognition Event
National Life Insurance Company Limited, a prominent player in Nepal's burgeoning insurance sector, recently hosted a comprehensive training and cultural program designed to celebrate and empower its top-performing agents. Held at the luxurious Hotel Royal Tulip in Lalitpur, the event served as a crucial platform to acknowledge agents who had successfully met their targets under the company's Baishakh 2083 monthly incentive scheme. This initiative underscores National Life Insurance's unwavering commitment to fostering a high-performance culture and investing in the professional development of its extensive sales force. The prestigious gathering was inaugurated by the company's Chief Executive Officer, marking a significant occasion that brought together approximately 300 attendees. This included key departmental heads, dedicated branch chiefs, senior business managers, managers, and a substantial number of agents from across the network. In his inaugural address, the CEO proudly highlighted the company's exceptional performance in the fiscal year 2082/83, particularly emphasizing its leading position in first-year premium collection – a critical metric reflecting an insurance company's growth and market penetration. He extended heartfelt gratitude to all stakeholders for their invaluable support, reaffirming the company's strategic intent to further strengthen and expand its agent network in the upcoming fiscal year. This commitment is vital in a competitive market like Nepal, where a robust and well-trained agent force is often the backbone of an insurer's success. A pivotal segment of the program was a specialized training session conducted by renowned trainer Kazim Raza. The session focused on the rigorous qualifications required for the Million Dollar Round Table (MDRT), an internationally recognized standard of excellence for life insurance and financial services professionals. MDRT membership signifies superior professional knowledge, strict ethical conduct, and outstanding client service. By providing agents with insights into achieving this global benchmark, National Life Insurance is not only investing in the individual growth of its agents but also elevating the overall professionalism and service quality of its entire sales team. Such training initiatives are crucial for equipping agents with advanced sales techniques, product knowledge, and client relationship management skills, ultimately leading to enhanced productivity and customer satisfaction. For investors, this signifies a company committed to human capital development, which directly translates into sustainable business growth and competitive advantage. Beyond the professional development aspect, the event also featured a vibrant cultural program, designed to foster camaraderie and celebrate the collective achievements of the agents. The evening was enlivened by captivating performances from popular comedian Suman Karki, talented musicians Ramchandra Kafle and Junu Rijal, acclaimed singer Deepak Bajracharya, the energetic Rhythm Band, and DJ Amu. These cultural interludes provided a much-needed opportunity for agents to relax, network, and reinforce their sense of belonging to the National Life Insurance family. Such motivational events play a critical role in boosting morale, recognizing hard work, and creating a positive work environment, which are all essential for agent retention and sustained high performance in the demanding sales profession. For investors, this event serves as a clear indicator of National Life Insurance's strategic approach to market leadership. By consistently investing in the training, motivation, and recognition of its agents, the company is fortifying its most crucial asset – its human capital. A highly skilled and motivated agent network is instrumental in expanding market reach, acquiring new clients, and maintaining strong relationships with existing policyholders. In Nepal's dynamic insurance landscape, where competition is intensifying and regulatory standards are evolving, a company's ability to empower its sales force directly impacts its ability to capture market share and drive profitability. National Life Insurance's proactive stance in agent development positions it favorably for continued growth and sustained success in the years to come, reinforcing its commitment to delivering value to both its policyholders and its shareholders. The event successfully combined professional enrichment with celebratory recognition, setting a positive tone for the company's future endeavors.
South Korean Lending Rates Surge in June as Central Bank Signals Further Tightening
South Korea's financial landscape is experiencing a significant shift, with bank lending rates rebounding sharply in June. This increase, as reported by the Bank of Korea (BOK) on Tuesday, reflects growing market expectations of sustained interest rate hikes and the central bank's firm commitment to a tighter monetary policy. For investors monitoring global economic trends, this development signals a crucial phase for the South Korean economy and its capital markets. The weighted average interest rate on new bank loans climbed by 0.12 percentage points from May, reaching 4.31% in June. This reversal follows a marginal decline in May and underscores the market's adjustment to the BOK's more hawkish stance. Earlier this month, the Bank of Korea raised its benchmark policy rate by 25 basis points to 2.75%, marking a decisive pivot towards monetary tightening. This move comes after an extended period of accommodative policy, maintained for approximately three and a half years since January 2023, and is primarily aimed at combating persistent inflationary pressures and aligning with global central bank trends. The impact of these rising rates is being felt across various sectors, with corporate borrowing costs experiencing a notable uptick. The average interest rate on new corporate loans rose by 0.14 percentage points to 4.27%. While large corporations saw their lending rates increase by 0.07 percentage points to 4.17%, small and medium-sized enterprises (SMEs) faced a more substantial hike of 0.23 percentage points, pushing their rates to 4.38%. This differential impact highlights the increased vulnerability of SMEs, which often have less access to diverse funding sources and are more sensitive to borrowing cost fluctuations. Higher financing costs for businesses could potentially dampen investment, hinder expansion plans, and impact overall profitability, especially for those with significant debt exposure. Housesholds are also bearing the brunt of the tightening cycle. The average lending rate for new household loans increased by 0.04 percentage points to 4.50%. Within this segment, mortgage loan rates edged up by 0.04 percentage points to 4.36%. More significantly, unsecured credit loan rates registered a steeper increase of 0.23 percentage points, reaching 5.72%. This rise in household borrowing costs could strain consumer budgets, potentially leading to reduced discretionary spending and a cooling effect on the housing market. For individuals with variable-rate loans, the immediate impact on monthly payments will be noticeable, increasing the financial burden. In parallel with lending rates, deposit rates have also moved higher, reflecting the broader upward trend in interest rates across the banking sector. The weighted average rate on new bank deposits increased by 0.15 percentage points from the previous month, reaching 3.08% in June. While this offers some relief to savers, it also signifies an increased cost of funds for banks, which must balance higher deposit payouts with their lending strategies. For investors, these developments signal a challenging yet potentially opportunistic environment. The BOK's commitment to taming inflation, even at the risk of slowing economic growth, suggests that higher policy rates could continue to push up both lending and deposit rates in the coming months. This environment typically favors sectors with strong cash flows and less reliance on debt, while growth-oriented companies with high leverage might face headwinds. Furthermore, a strengthening Korean Won (KRW) could be a consequence of higher interest rates, attracting foreign capital but potentially impacting export competitiveness. Investors should closely monitor the BOK's future communications and global economic indicators to navigate this evolving landscape effectively, considering the implications for equity valuations, bond yields, and currency movements in South Korea.
Johnson & Johnson Proposes Landmark $5.5 Billion Settlement to Resolve Baby Powder Lawsuits
In a significant development for the global healthcare and consumer goods giant, Johnson & Johnson (J&J) has put forth a substantial offer of $5.5 billion (approximately NPR 733 billion) to settle tens of thousands of lawsuits related to its talc-based baby powder and other talc products. This proposed historic agreement aims to bring an end to a protracted legal battle that has spanned years, casting a long shadow over the company's reputation and financial outlook. The core of the dispute revolves around allegations that J&J's talc-based products caused ovarian cancer in thousands of consumers. Plaintiffs claim that the talc used in these products was contaminated with asbestos, a known carcinogen. Talc, a mineral, is often mined in close proximity to asbestos, leading to concerns about cross-contamination. Despite these serious accusations, Johnson & Johnson has consistently and vehemently denied any wrongdoing, asserting that its products are safe and free from asbestos. Eric Haas, J&J's Vice President of Litigation, reiterated the company's stance, stating that the allegations are "unfounded." He emphasized that numerous scientific studies have affirmed the safety of talc and confirmed the absence of cancer-causing asbestos in their products. However, Haas clarified that the company's willingness to pursue this settlement is a strategic move. The objective is to extricate itself from the ongoing legal quagmire, allowing J&J to refocus its considerable resources and efforts on its primary mission: developing life-saving medicines and innovative medical devices. This decision underscores a pragmatic approach to risk management, prioritizing business continuity over prolonged legal defense, even when confident in its position. The proposed settlement plan is contingent upon acceptance by a significant majority of the legal firms representing the cancer victims – specifically, 95% of them must agree to the terms. If approved, the financial payout will be structured over several years. Johnson & Johnson has indicated that it plans to disburse up to $3 billion within the coming year, with the remaining amount scheduled to be paid by 2028. This phased payment approach is designed to manage the financial impact on the company while providing compensation to claimants. In response to the escalating controversy and mounting public pressure, Johnson & Johnson took proactive steps regarding its product line. The company ceased the sale of talc-based baby powder in the United States two years ago, extending this ban globally in 2022. Currently, J&J manufactures its baby powder using cornstarch as an alternative to talc, a move aimed at addressing consumer concerns and adapting to evolving market demands and regulatory landscapes. This legal saga, which commenced as early as 2009, has seen J&J achieve some legal victories in individual cases. Nevertheless, the sheer volume of lawsuits and the potential for future litigation have created an environment of uncertainty. The proposed $5.5 billion settlement, therefore, represents a comprehensive strategy to mitigate future legal risks and provide a definitive resolution to a complex and costly chapter in the company's history. For investors, this settlement, while substantial, could be viewed as a positive step towards removing a significant overhang, potentially allowing the company's stock to reflect its underlying business fundamentals more accurately, free from the constant threat of litigation. It highlights the critical importance of product liability management in the consumer goods sector and the immense financial implications when such issues arise.
Nepal Appoints Vivekraj Kandel as Strategic Advisor to Energy Minister, Poised to Transform Energy Sector
In a significant move poised to invigorate Nepal's crucial energy sector, Mr. Vivekraj Kandel has been appointed as the Advisor (Energy Trade and Infrastructure, Special Class) to the Minister for Energy, Water Resources, and Irrigation, Mr. Biraj Bhakta Shrestha. This high-profile appointment signals the government's renewed focus on strategic energy development, trade, and infrastructure enhancement, areas critical for Nepal's economic prosperity and long-term energy security. Mr. Kandel, hailing from Chitwan, steps into this pivotal role with a clear mandate to provide strategic counsel on a range of issues. His responsibilities will primarily revolve around formulating policies that underscore Nepal's long-term energy security, driving forward essential reforms within the domestic energy sector, and actively working to attract greater private sector investment. Furthermore, he is expected to play a crucial role in accelerating comprehensive energy trade reforms and fostering regional energy market integration, which are vital for leveraging Nepal's immense hydropower potential and positioning it as a key player in South Asian energy dynamics. Mr. Kandel brings a wealth of academic prowess and extensive professional experience to his new position. He holds a Civil Engineering degree from Tribhuvan University, a foundational qualification for understanding the technical intricacies of energy infrastructure. Further enhancing his expertise, he pursued a Master's in Public Administration (MPA) with a specialization in Climate Energy Transformation and Leadership from the prestigious Harvard University's Kennedy School of Government. Additionally, he holds a Master's in Energy Management from the University of Twente in the Netherlands. This unique blend of engineering, public administration, and specialized energy management education equips him with a holistic perspective essential for navigating the complex challenges and opportunities within the energy landscape. His professional journey spans over a decade and a half, during which he has contributed significantly to various national and international organizations, including the United Nations Development Programme (UNDP), the World Bank, and the International Renewable Energy Agency (IRENA). This extensive experience with global development and energy institutions provides him with invaluable insights into best practices, international cooperation mechanisms, and sustainable energy development strategies, all of which will be instrumental in shaping Nepal's energy future. For investors, this appointment underscores a commitment from the Nepali government to professionalize and strategically guide the energy sector. Mr. Kandel's background suggests a data-driven and policy-oriented approach, which could lead to more stable regulatory frameworks, clearer investment guidelines, and enhanced project execution. A robust and well-managed energy sector is a cornerstone for industrial growth, job creation, and overall economic stability, making this appointment a positive signal for both domestic and international investors looking at Nepal's burgeoning energy market. His focus on attracting private sector investment and regional integration could unlock new avenues for capital deployment and cross-border energy projects, promising a more dynamic and interconnected energy economy for Nepal.
Nepal SBI Bank Wins Four International Banking Awards at ICC Emerging Asia Banking Awards 2026
Nepal SBI Bank Ltd. (SBI) has received four prestigious international awards from the Indian Chamber of Commerce (ICC) at the 4th Emerging Asia Banking Awards 2026 held in New Delhi. The bank was recognized in the categories of Best Bank in MSME Acceleration, Best Performance on Asset Quality, Best Performance on Profitability, and Best Commercial Bank. The awards were received by Dy. CEO & COO Vikas Anand and Head of Finance & Planning Netra Khatiwada. The recognition highlights NSBL’s strong performance in commercial banking, financial management, and support for MSME growth. With over 33 years of service, the bank currently operates a nationwide network of 103 branches, 22 extension counters, 21 branchless banking units, 127 ATMs, seven provincial offices, and a corporate office.
inDrive Empowers Nepali Women Through ‘Driving Naari Nepal’ Initiative
inDrive has completed the first cohort of its Driving Naari Nepal programme, certifying ten women after three months of professional two-wheeler driving, road safety, licensing, and self-defence training. Launched in April 2026, the initiative aims to empower women from underserved communities by creating economic opportunities in Nepal’s mobility sector and encouraging greater female participation in ride-hailing services. During the certification ceremony in Kathmandu, participants received certificates, safety kits, and prizes, including an electric scooter, smartphones, and smartwatches. inDrive officials, Kathmandu Valley Traffic Police, and brand ambassador Swastima Khadka highlighted the programme’s role in promoting women's safety, financial independence, and inclusion while expanding transportation choices for passengers. The company plans to build on the programme’s success and replicate it in other markets.
Construction of 28.3 MW Middle Chameliya Hydropower Project Set to Begin in Darchula
Sudurpashchim Province is expanding its renewable energy capacity as preparations begin for the construction of a new 28.30 megawatt hydropower plant on the Chameliya River. Promoted by Darchula Power Company, the Middle Chameliya Hydropower Project will be located in Marma Rural Municipality of Darchula district, situated within the protected Api Nampa Conservation Area. The project has reached several key regulatory and financial milestones to pave the way for development.The Department of Electricity Development granted the generation license for the run-of-river project in March 2025. Following an initial Environmental Impact Assessment (EIA) approval in March 2024, developer Chameliya Power Limited secured permission to conduct a Supplementary EIA to assess minor layout revisions and structural relocations on the river's left bank.The Ministry of Agriculture, Forestry and Environment recently issued a public notice requesting feedback on the supplementary study. Commercial preparations for the plant are already in place.The developer signed a Power Purchase Agreement (PPA) with the state-owned Nepal Electricity Authority (NEA) in October 2023 and completed financial closure in June 2025. All electricity generated by the project will be fed directly into the national grid via the NEA's nearby Balach Substation. Located approximately 30 kilometers northwest of Gokuleshwar, the plant will operate between two existing projects on the same river, athe 40 MW Upper Chameliya project upstream and the 30 MW Chameliya Khola project downstream.Once operational, the Middle Chameliya plant is projected to supply 118.52 gigawatt hours (GWh) of electricity during the wet season and 67.10 GWh during the dry season. With an estimated total investment of NPR 6.23 billion (approx. Rs 6.236 billion), construction is targeted for completion within three years.
Don't sell, distribute banned goods: Commerce Department
The Department of Commerce, Supplies and Consumer Protection has urged everyone not to sell and distribute banned items. The Department reminded the provision of the Import and Export (Control) Act, 2013, as per which it can determine the goods to bed prohibited and controlled for the export or import. So, the items banned by the authority are not allowed sales and distribution. The importers, hoarders and traders are especially urged to pay heed to the legal facts- engaging in business by complying with the set obligations and conditions. If anyone or business entity is found ignoring the diktat, it would face stringent actions as per Import and Import (Control) Act, 2013, the Consumer Protection Act, 2075 and other existing laws. The authority also shared that it has beefed up market monitoring of late. On Monday, various nine commercial firms were monitored in Kathmandu and corrective measures suggested for reform. The Department shared the information that it had been conducting regular market monitoring by ensuring participation of consumer rights activists and local stakeholders onboard.
Gold Price Falls Today; Check Updated Rate
Gold prices have witnessed a moderate fall in the domestic market today, falling by Rs. 4300 per tola to settle at Rs. 284,200 per tola, down from the previous rate of Rs. 288,500 per tola. The Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA) reported that Tejabi gold price also decreases by Rs. 4300 per tola to reach Rs. 283,500 per tola, compared to Rs. 287,800 per tola on the previous day. Similarly, silver prices moved in the same direction, falling by Rs. 135 per tola to Rs.4,310 per tola from Rs. 4,445 per tola on the previous day.
Inland Revenue Department Clarifies VAT on Electricity Consumption to Apply Only from Shrawan 1
The Inland Revenue Department (IRD) has clarified that the newly introduced Value Added Tax (VAT) on electricity consumption will apply only to electricity used from Shrawan 1, 2083 onwards, addressing widespread confusion among consumers and businesses over the implementation of the new tax provision. In a public notice issued on Tuesday, the department explained that although the Economic Act, 2083 amended the Value Added Tax Act, 2052 to impose VAT on electricity services, the provision becomes effective only from Shrawan 1. Under the amended law, electricity supplied to final consumers will be subject to 5 percent VAT, while electricity supplied to other consumers, including businesses falling under the applicable category, will attract 13 percent VAT. The clarification comes after concerns were raised regarding electricity bills issued on or after Shrawan 1 for power consumed during the month of Ashadh. The department stated that electricity consumed up to Ashadh 32, 2083, even if billed after Shrawan 1, will remain exempt from VAT because electricity was still listed under the VAT-exempt essential goods and services schedule during that period. Therefore, VAT will not be charged on electricity consumed before the new provision came into force. The IRD further clarified that the VAT will apply to all electricity consumption from Shrawan 1 onwards, regardless of the billing date. It also stated that minimum charges and demand charges collected by the Nepal Electricity Authority as part of the approved electricity tariff are considered components of the electricity service. Consequently, these charges will also be subject to VAT on electricity consumed from Shrawan 1. The department said the clarification was issued to eliminate confusion among the general public, electricity consumers, and businesses regarding the implementation of the new VAT provisions. It urged all stakeholders to follow the revised tax rules as stipulated in the Economic Act, 2083.
Progressive Finance is Auctioning 2,18,692 Units Promoter Shares from Today
The existing promoter of Progressive Finance Limited (PROFL) is auctioning 2,18,692 units of shares to the interested promoter shareholders from today. 2,18,692 units of promoter shares will be auctioned. Interested individuals are requested to bid for the auction within 35 days from this notice's publication date, i.e.,12th Shrawan, 2083. The shareholders should submit their bids at the central office of the company located at Tinkune, Kathmandu. If no bids are received from existing promoter shareholders within the specified timeframe, the shares will later be auctioned to the general public. PROFL closed at Rs. 437.90. Auction Notice:
NEPSE Opens Applications for Chief Executive Officer; Finance Ministry Invites Qualified Candidates
The Government of Nepal has formally initiated the recruitment process for the vacant post of Chief Executive Officer (CEO) of the Nepal Stock Exchange (NEPSE), inviting applications from qualified Nepali citizens through an open competitive selection process. A public notice published by the Selection and Recommendation Committee formed to appoint the CEO states that interested candidates must submit their applications within 15 days from the date of publication. Applications, along with a sealed business action plan, must be submitted during office hours to the Financial Sector Management and Corporation Coordination Division under the Ministry of Finance at Singha Durbar, Kathmandu. The recruitment process follows the recently approved Procedure for the Selection and Recommendation of the Chief Executive Officer of Nepal Stock Exchange Limited, 2083. According to the vacancy notice, candidates must possess at least a Master's degree from a recognised institution in Economics, Commerce, Finance, Management, Information Technology, Business, or Law, or hold a Chartered Accountancy (CA) qualification or an equivalent degree. Applicants are also required to have a minimum of 15 years of professional experience in the capital market, financial sector, or management, including at least seven years in a managerial position. The notice clarifies that a managerial position refers to at least a Second Class Officer level in the Government of Nepal or an equivalent role, or executive leadership positions up to two levels below the chief executive in a company or organised institution. Applicants must be Nepali citizens aged between 30 and 65 years as of the application deadline. In addition, candidates must not be disqualified under the CEO Selection Procedure, 2083, or the Standards for Appointment and Nomination of Office Bearers and Members of Public Bodies under the Ministry of Finance, 2073 (as amended). The notice states that the following individuals are ineligible:1. Non-Nepali citizens.2. Persons convicted of corruption, money laundering, human trafficking, narcotics offences, crimes involving archaeological artefacts or protected wildlife, or other criminal offences involving moral turpitude.3. Individuals blacklisted under prevailing laws who have not completed three years since being removed from the blacklist.4. Persons holding permanent residency in a foreign country.5. Individuals currently engaged in contractual work with a public institution in the capacity of an executive head.6. Persons declared mentally unfit. Besides the standard application documents, applicants are required to submit a detailed business action plan outlining their vision and strategy for leading Nepal's only stock exchange. The business action plan must be submitted in three sealed copies. The outer envelope must clearly mention the applicant's name and indicate that it contains the application and business action plan for the post of NEPSE CEO. Applicants must also submit all documents specified under the CEO Selection Procedure, including self-certified copies of academic and professional certificates, prescribed application forms, and two passport-sized photographs. Candidates must deposit a non-refundable application fee of Rs. 5,000 at the designated revenue account of the Ministry of Finance through the Singha Durbar branch of Rastriya Banijya Bank and submit the original payment voucher along with the application. The selected CEO will receive salary, allowances, and other benefits as determined by the Government of Nepal. The Selection and Recommendation Committee will assess applicants based on their academic qualifications, professional experience, business action plan, and presentation before recommending suitable candidates for appointment. The committee has reserved the right to reject any application with or without assigning reasons. It has also warned that any applicant found submitting false information or forged documents will have their application cancelled and may face legal action under prevailing laws. The vacancy marks the formal commencement of the process to appoint a new chief executive for NEPSE, a key institution in Nepal's capital market that has been operating without a permanent CEO.
The Growing Specter of 'AI Washing' in Capital Markets: A Warning for Investors
In an era increasingly dominated by artificial intelligence (AI), a new and concerning phenomenon has emerged in capital markets: 'AI Washing.' This term, rapidly gaining traction among financial experts, describes the deceptive practice of companies making misleading or exaggerated claims about their AI capabilities to attract investors and inflate share prices. Much like 'Greenwashing,' where companies falsely tout environmental friendliness, AI Washing creates a distorted perception of a company's technological prowess and future prospects. AI Washing primarily manifests in three insidious ways, designed to capitalize on the current AI hype: 1. **Exaggeration:** Companies often overstate their AI integration, marketing basic software or rule-based algorithms as advanced generative AI. This creates an illusion of cutting-edge technology where, in reality, only rudimentary systems are in place. 2. **Future Plans as Present Successes:** Firms frequently announce ambitious AI development plans, generating significant buzz, but fail to deliver tangible results or integrate these technologies effectively into their current operations. They present aspirational goals as immediate achievements. 3. **False or Misleading Claims:** Perhaps the most egregious form, this involves companies making outright false claims about their products' AI capabilities, such as promising 100% AI-driven results or a doubling of profits due to AI, thereby consistently misleading investors. The global financial landscape has already witnessed the repercussions of AI Washing. In 2024, the U.S. Securities and Exchange Commission (SEC) took decisive action, imposing penalties on two prominent investment advisory firms, Delphia Inc. and Global Predictions Inc., for making deceptive and false claims regarding their use of AI in investor communications. This serves as a stark reminder of the regulatory scrutiny now being applied to this emerging issue. AI Washing poses several grave risks to the integrity of the stock market and the financial well-being of investors: * **Investor Financial Loss:** Ordinary investors, often swayed by market trends and buzzwords, may purchase shares of companies merely because 'AI' appears in their name or press releases. When the true, often weak, financial health of these companies comes to light, investors face significant losses, especially during market downturns. Former SEC Chairman Gary Gensler has highlighted that AI Washing has led to distress for millions of investors globally over the past 18-24 months, though precise figures remain elusive. * **The Threat of an 'AI Bubble':** The widespread, often unfounded, claims of AI integration can create an artificial valuation across the market. This inflates share prices far beyond a company's actual capabilities, raising the specter of an 'AI Bubble' akin to the dot-com crash of 2000, where speculative valuations led to widespread market collapse. * **Undermining Genuine Innovation:** Legitimate technology companies that are genuinely investing in and developing revolutionary AI technologies face significant challenges. The proliferation of misleading claims makes it harder for them to raise capital and erodes investor trust, as the market struggles to differentiate between authentic innovation and mere hype. Regulating AI, a complex and rapidly evolving technology, presents a formidable challenge for financial oversight bodies worldwide. Analysts note that even powerful economies like Europe, America, and China grapple with the complexities of regulating AI Washing. For developing nations like Nepal, with nascent capital markets and regulatory frameworks, this challenge is even more pronounced, akin to 'chewing iron chickpeas' – a Nepali idiom for an extremely difficult task. The Nepal Stock Exchange (NEPSE) and its regulatory body, SEBON, must remain vigilant and proactive in developing robust mechanisms to identify and curb such deceptive practices to protect investor interests and maintain market stability. Investors, too, must exercise heightened due diligence, looking beyond the hype to scrutinize a company's fundamentals and verifiable AI integration before making investment decisions.
Nepal's Open-Ended Funds Under Scrutiny: Siddhartha Capital's 3% Dividend Raises Questions on Investor Returns and Market Performance
The recent declaration of a 3% cash dividend by Siddhartha Systematic Investment Scheme (SSIS), an open-ended fund managed by Siddhartha Capital, for the recently concluded fiscal year has sent ripples through Nepal's investment community. This modest return has sparked considerable debate and disappointment among small investors, particularly when juxtaposed against commercial banks offering an average of 2.75% interest on standard savings accounts—a virtually risk-free investment. The stark comparison between a market-linked investment, which inherently carries capital risk, and a secure bank deposit, where both principal and interest are guaranteed, raises critical questions about the efficiency of fund managers and the efficacy of their portfolio selection strategies. Investors are pondering why, despite attractive incentives such as exemption from capital gains tax, dividend tax relief, priority allocation in IPOs, and even exit fees for early withdrawals (within 24 months), the returns from such schemes are barely above, or in some cases, equivalent to, basic savings rates. This situation has intensified scrutiny on the performance expectations from other open-ended funds in the market. Open-ended collective investment schemes and their Systematic Investment Plans (SIPs) have steadily gained traction in Nepal's capital market as a disciplined and long-term investment avenue for retail and small investors. Approved by the Securities Board of Nepal (SEBON), various capital management companies operate these funds. The journey began formally on Jestha 19, 2076 BS (June 2, 2019), with the launch of NIBL Sahabhagita Fund. Since then, the market has seen the emergence of over a dozen such schemes, including Siddhartha Systematic Investment Scheme, NMB Saral Bachat Fund-E, NIC Asia Dynamic Debt Fund, Nabil Flexi Cap Fund, Kumari Sunaulo Lagani Yojana, and Shubhalaxmi Kosh. Unlike closed-ended funds, which have a fixed maturity period, open-ended funds offer investors the flexibility to buy and sell units at any time based on their Net Asset Value (NAV). These funds typically pool capital from numerous small investors and diversify it across a range of assets, including equities, debentures, and fixed deposits in banks and financial institutions, aiming to mitigate risk and generate stable returns. Historically, open-ended funds in Nepal have demonstrated robust performance, delivering commendable dividends to their unit holders despite the inherent volatility of the Nepali stock market. For instance, NIBL Sahabhagita Fund distributed 8.25% in FY 2076/77, an impressive 50% in FY 2077/78 (a period of market peak), 7.2% in FY 2078/79, 4% in FY 2079/80, and 7% in FY 2081/82 (as per the article's data, likely referring to the most recent declaration for a past fiscal year). Other funds have also historically distributed dividends ranging from 7% to 16% in previous years. However, recent market sluggishness and variations in fund managers' investment strategies have led to less enthusiastic returns across the board. Investment experts caution against evaluating SIPs and mutual funds solely on a single year's dividend. The core advantage of SIPs lies in rupee-cost averaging: investors purchase more units when the market is low and fewer when it's high, thereby reducing the average cost of investment over time. Historical data suggests that investors who consistently invested a minimum of NPR 1,000 monthly through SIPs for 3 to 5 years have typically achieved an average annual compounded return of 10% to 15%. While a short-term market downturn might lead to a decrease in a fund's NAV and a lower dividend rate, a market recovery can significantly boost both capital appreciation and overall returns. For small investors, including students and those with modest incomes, SIPs remain an excellent tool for disciplined savings, with the flexibility to start with as little as NPR 1,000 per month. The option of dividend reinvestment further amplifies long-term compounded returns, allowing investors to purchase additional units with their dividends rather than taking cash. Furthermore, the liquidity offered by open-ended funds, allowing investors to redeem units at NAV whenever needed, adds another layer of convenience. In the current economic climate, characterized by declining bank interest rates and persistent stock market volatility, investors are advised to look beyond mere annual dividend figures. A more holistic approach involves assessing a fund's improvement in Net Asset Value, its diversification strategy, and its long-term growth potential. Making informed decisions based on these broader metrics, rather than short-term returns, is crucial for navigating the dynamic landscape of the Nepali capital market.
Nepal's Finance Minister Pushes SEBON for Enhanced Regulatory Quality and Robust Capital Market Expansion
The Nepal Stock Exchange (NEPSE) and its regulatory body, the Securities Board of Nepal (SEBON), are at a pivotal juncture, as evidenced by the recent high-level visit of Finance Minister Dr. Swarnim Wagle to SEBON's offices. This visit, attended by key financial dignitaries including Finance Secretary Dr. Ghanshyam Upadhyaya and SEBON's Board of Directors, underscored the government's renewed focus on bolstering the nation's capital market. Minister Wagle's directives to SEBON emphasize a dual mandate: significantly enhancing regulatory quality and accelerating the comprehensive development and expansion of Nepal's burgeoning capital market. SEBON Chairman Dr. Gopal Prasad Bhatta, in his welcoming remarks, provided a detailed overview of the Board's strategic initiatives. He highlighted the formulation and ongoing implementation of a robust Capital Market Development Blueprint, which serves as SEBON's overarching vision for the market's future trajectory. Furthermore, Chairman Bhatta informed the Minister about the initiation of the capital market policy and action plan for the fiscal year 2083/84, signaling a proactive approach to regulatory evolution. A key aspect of SEBON's current agenda involves the preparation of consultative papers, rules, and directives pertaining to a wide array of primary and secondary market instruments. These include critical areas such as Initial Public Offerings (IPOs), the introduction of intraday trading, the refinement of margin lending practices, and the potential implementation of short selling mechanisms. These reforms are crucial for diversifying investment avenues and enhancing market liquidity. The regulatory body has set an ambitious timeline for these developments, aiming to complete the preparation of necessary consultative papers, rules, and directives by Shrawan 2083. Following this, a crucial phase of stakeholder consultation is slated to commence from Bhadra 2083, ensuring that all market participants have an opportunity to provide feedback. This inclusive approach is vital for crafting policies that are both effective and widely accepted. The final policies, rules, and directives will then undergo review and amendment based on the valuable insights gathered during these consultations, reflecting a commitment to adaptive and responsive regulation. Despite these forward-looking initiatives, Chairman Bhatta candidly addressed the existing challenges confronting Nepal's capital market. He appealed to the Ministry of Finance for crucial facilitation and support in overcoming these hurdles, emphasizing the need for effective policy formulation and implementation. Furthermore, Bhatta stressed the importance of strengthening SEBON's institutional capacity and enhancing employee motivation, recognizing that a well-resourced and highly motivated regulatory team is indispensable for effective oversight and market development. In his address, Finance Minister Wagle delivered a clear and emphatic message. He directed SEBON to prioritize advancing capital market development through an unwavering commitment to improving regulatory quality and upholding the highest ethical standards. Minister Wagle acknowledged the positive market sentiment generated by the appointment of new leadership at SEBON and the Board's strategic decision to pursue a long-term vision. He articulated a vision for SEBON to evolve into a powerful and credible regulator, drawing a parallel with the pivotal role played by Nepal Rastra Bank (NRB) in the country's broader financial system. This comparison underscores the government's expectation for SEBON to become a cornerstone of financial stability and investor trust. The Finance Minister also highlighted the significant increase in investor expectations, driven by the rapid growth of dematerialized (demat) accounts across Nepal. He urged SEBON to align its institutional development and regulatory capacity-building efforts with these heightened expectations, ensuring that the market can effectively serve its growing investor base. Emphasizing a political-economy perspective, Minister Wagle called for capital market policies to be formulated through extensive consultation and discussion with all concerned stakeholders. This approach aims to foster sustainable development and ensure that policies are robust, equitable, and conducive to long-term growth. Minister Wagle concluded by reassuring the market that the Government of Nepal is fully committed to providing all necessary facilitation and support for regulatory and legal reforms. This commitment is aimed at strengthening the capital market, enhancing investor confidence, and positioning Nepal's financial landscape for sustained prosperity. The Minister's visit and directives arrive at a critical juncture, coinciding with SEBON's ambitious plans to introduce and reform several capital market instruments and regulatory frameworks. These efforts are poised to fortify market infrastructure, broaden investment opportunities, and significantly elevate the overall efficiency and credibility of Nepal's capital market, promising a more dynamic and secure environment for investors.
Supreme Court Declines Interim Order on MP Benefits, Demands 'Show Cause' from Government
The Supreme Court of Nepal has opted against issuing an interim order to halt the government's controversial decision to reinstate and enhance the salaries and benefits for federal parliament officials and their personal secretaries. This ruling, delivered by a single bench of Justice Binod Sharma, means that the revised benefits can currently proceed, much to the dismay of critics who argue against the timing and necessity of such an increase amidst prevailing economic challenges and public austerity calls. While the court did not impose an immediate stay, it has issued a 15-day 'show cause' order to the government. This directive compels the government to provide a detailed justification for its decision, particularly concerning the legal basis and rationale behind the increased remuneration packages. This 'show cause' order signifies that the matter is far from settled and will undergo further judicial scrutiny, keeping the issue in the public and political spotlight. It underscores the judiciary's role in ensuring accountability and transparency in governmental actions, especially those with significant financial implications for the state. The petition challenging the government's move was filed by Advocate Dr. Premraj Silwal, who contended that the government's publication of the notice in the Gazette on August 4th (Saun 4th) to augment parliamentary benefits was unwarranted and should be revoked. The petitioner highlighted concerns about the appropriate use of public funds, the perceived lack of transparency in the decision-making process, and the potential burden on the national exchequer at a time when the economy is grappling with various pressures. In its initial assessment, the Supreme Court acknowledged that the government possesses the legal authority to amend the schedule of relevant acts. Furthermore, the court noted that no "direct legal error" was immediately apparent in the Gazette notification itself. This particular observation is crucial, as it suggests that the procedural aspects of the government's decision might have been followed, even if the substance remains contentious. However, the 'show cause' order indicates that the court is still seeking deeper clarity on the underlying justifications and potential broader implications, moving beyond mere procedural correctness to substantive fairness and public interest. For investors and the general public, decisions regarding public expenditure and the benefits afforded to public officials carry significant weight. They often serve as indicators of fiscal prudence, governance standards, and the government's responsiveness to public sentiment. While the immediate implementation of the revised benefits might not directly impact market dynamics, the ongoing legal challenge and the public discourse surrounding it could influence overall investor confidence by raising questions about accountability, the efficient allocation of state resources, and the stability of the policy environment. A government perceived as fiscally irresponsible or unresponsive to public concerns can erode trust, which is a critical component of a healthy investment climate. The final resolution of this case will hinge on the written responses submitted by the government and other opposing parties. The court will then deliberate on these submissions, potentially leading to a definitive judgment that could either uphold the government's decision or mandate its reversal. Until then, the situation remains fluid, with the revised benefits in effect but under the shadow of judicial review. This development underscores the critical role of the judiciary in ensuring checks and balances within the democratic framework, particularly when decisions involve significant public financial implications. The outcome will be closely watched by various stakeholders, including civil society, political analysts, and the investor community, as it could set precedents for future government actions concerning public sector remuneration and fiscal responsibility.
Nepal's Cooperative Crisis: NPR 71 Crore Returned to Savers, Defaulters Face Blacklisting and Asset Freezes
The Problematic Cooperative Management Committee, operating under the Ministry of Land Management, Cooperatives and Poverty Alleviation, has released a comprehensive update on its efforts to resolve the ongoing crisis within Nepal's cooperative sector. The committee's latest progress report and future action plan highlight significant strides in safeguarding savers' interests while implementing stringent measures against defaulting borrowers. This development is crucial for restoring public trust in cooperatives and ensuring financial stability across the nation. Over the past year, the committee has successfully settled liabilities amounting to approximately NPR 71 crore for 11,000 savers affected by various problematic cooperatives. This substantial recovery demonstrates a concerted effort to address the widespread issues that have plagued the sector. The breakdown of this settlement reveals that NPR 21 crore was returned directly in cash, while NPR 50 crore was managed through savings adjustments, providing much-needed relief to a large number of individuals. Furthermore, the committee has initiated a robust recovery strategy from borrowers, collecting NPR 22.83 crore by implementing a policy of 10% cash repayment and 20% savings adjustment. A key focus of the committee's strategy has been the prioritization of small savers and vulnerable populations. The process of returning funds to savers with balances of NPR 5 lakh or less has been significantly accelerated. Notably, the majority of savers with deposits up to NPR 10,000 have already received their funds. In a specific instance, for the Shivashikhar Multipurpose Cooperative, funds for savers with up to NPR 1,500 have been verified and are currently being disbursed. Beyond monetary returns, the committee has extended special consideration to senior citizens, single women, and individuals suffering from incurable diseases, providing NPR 25,000 each to 48 victims for medical treatment, totaling NPR 12 lakh within the first 48 days of this initiative. Specific cooperative institutions are also seeing progress. For the Nepal Cooperative Financial Institution, arrangements are in place to return funds to 596 savers, with those holding up to NPR 1 lakh expected to receive their amounts by mid-December, and those with up to NPR 5 lakh by mid-November. Similarly, following a decision on July 6, 2025 (Ashar 22, 2082), payments have commenced for savers of Kantipur and Gorkha Saving cooperatives, with initial disbursements of NPR 17,954 and NPR 25,242 per person, respectively. Further repayments for these institutions are slated to begin from the third week of July (Shrawan). Crucially, the committee is adopting an uncompromising stance against borrowers who fail to repay their loans. A strict policy is now in effect, initiating severe actions to recover outstanding debts. This includes freezing the bank accounts and passports of defaulting borrowers, guarantors, and cooperative operators. Moreover, a blacklisting process has been launched, which will have significant implications for individuals' financial standing and access to credit. In an unprecedented move, letters have been dispatched to local government bodies, requesting the suspension of public services and facilities for non-compliant borrowers until their financial obligations are met. The committee has also commenced the process of auctioning collateral held against loans and seizing cooperative vehicles to recover funds. Looking ahead, the committee has outlined ambitious plans for the coming months. It aims to complete the management of cooperative marts located in key areas such as Tanahun, Pokhara, Baglung, Burtibang, and Golbazar within the next four months. Additionally, from mid-July (Shrawan 1), a 'self-declaration form' submission process has been introduced for savers with deposits exceeding NPR 1 crore, indicating a move towards greater transparency and accountability. Rabin Dhakal, the member-secretary of the committee, confirmed that a scientific study is underway to optimize the utilization of the revolving fund provided by the Government of Nepal. He reiterated the committee's firm resolve, appealing to all borrowers to come forward immediately and fulfill their liabilities, emphasizing that there will be no leniency or exemption from repayment. This decisive action underscores the government's commitment to cleaning up the cooperative sector, protecting savers, and reinforcing the rule of law in Nepal's financial landscape. This comprehensive approach is expected to instill greater confidence among investors and contribute to the overall stability of the national economy.
Citizen Investment Trust Partners with Rainas Municipality to Launch Comprehensive Pension Scheme for Contract Employees
The Citizen Investment Trust (CIT), a prominent financial institution in Nepal dedicated to managing various provident and pension funds, has announced a significant partnership with Rainas Municipality in Lamjung district. This collaboration marks a crucial step towards enhancing social security and financial stability for contract employees within local government bodies. An official Memorandum of Understanding (MoU) was formally signed on Monday, initiating a new citizen pension scheme designed to provide long-term financial benefits to municipal staff. The agreement was formalized by Ms. Shobha Shrestha Subedi, the Acting Executive Director of the Citizen Investment Trust, and Mr. Khadga Bahadur Gurung, the Mayor of Rainas Municipality. This strategic alliance underscores CIT's commitment to extending its social security programs beyond traditional government and corporate sectors, reaching out to local administrative units and their workforce. For Rainas Municipality, this initiative reflects a progressive approach to employee welfare, ensuring that even contract staff, who often lack comprehensive benefits, are provided with a robust retirement plan. Under the terms of the newly established pension scheme, Rainas Municipality will enroll its contract employees, facilitating a structured savings mechanism for their post-retirement years. The financial contributions to this scheme are designed to be a shared responsibility, fostering a collaborative approach to employee welfare. Specifically, both the municipality and the individual employee will contribute an equal amount of NPR 2,500 each month. This combined contribution will result in a total of NPR 5,000 being deposited into the employee's pension fund every month. This consistent contribution aims to build a substantial corpus over the employees' working lives, ensuring a comfortable financial cushion upon retirement. Participants in the scheme will have the flexibility to choose how they receive their accumulated benefits. As per the regulations set forth by the Citizen Investment Trust, employees can opt to receive their pension as a lump sum payment upon reaching retirement age, typically 60 years. Alternatively, they can choose to receive regular pension payments, providing a steady income stream during their retirement years. This flexibility allows employees to tailor their retirement planning according to their individual financial needs and preferences, offering a sense of security and control over their future. Furthermore, the agreement includes comprehensive provisions for unforeseen circumstances, ensuring the financial well-being of employees' families. In the unfortunate event of a participant's death or disappearance after they have commenced receiving pension benefits, their spouse will be entitled to receive the benefits as per the fund's established regulations. Should both the participant and their spouse pass away, any remaining balance in the pension account will be disbursed to their legal heirs. This robust framework provides an essential safety net, protecting the financial interests of employees' dependents and offering peace of mind. From an administrative perspective, Rainas Municipality will play a crucial role in the ongoing management of the scheme. The municipality is tasked with regularly updating and providing essential employee details, Know Your Customer (KYC) information, and individual account records to the Citizen Investment Trust. This diligent record-keeping is vital for the smooth operation and transparency of the pension fund. Moreover, the scheme offers significant flexibility to individual employees. If an employee's contract ends or if the municipality ceases its contributions for any reason, the affected individual retains the right to either continue operating their pension account independently or withdraw the remaining accumulated funds. This provision ensures that employees are not locked into the scheme against their will and have agency over their savings. This partnership between CIT and Rainas Municipality serves as a commendable model for other local government bodies across Nepal. By extending social security benefits to contract employees, it addresses a critical gap in the welfare system, promoting greater financial inclusion and stability for a significant portion of the workforce. For investors, such initiatives highlight the expanding reach and impact of institutions like the Citizen Investment Trust, demonstrating their role in national development and social welfare. The successful implementation and potential replication of this model could significantly bolster the overall economic resilience of communities and contribute to a more equitable social security landscape in Nepal. This move not only secures the future of individual employees but also strengthens the institutional framework for social protection, reflecting a positive trend in Nepal's financial sector.
South Asian Internet Pioneers Honored, WorldLink Founder Dilip Agrawal Recognized for Nepal's Digital Revolution
In an era where modern life is unimaginable without the internet, serving as the pulsating heart of education, health, economy, and communication, the foundational architects of this digital network often remain unsung heroes. This narrative shifted recently at the 44th South Asian Network Operators Group (SANOG) conference in Kathmandu, where six pioneering internet engineers from across South Asia were formally recognized for their monumental contributions. The prestigious event saw special honors bestowed upon Dilip Agrawal from Nepal, Neeraj Sonkar and Suchit Nanda from India, Tariq Mustafa from Pakistan, Sumon Ahmed Sabir from Bangladesh, and Jichen Thinley from Bhutan. These visionaries were celebrated by the Internet Promotion Group during the inaugural session, acknowledging their pivotal roles in shaping the digital landscape of the region. Among the distinguished personalities, the journey of Nepal's Dilip Agrawal stands out as particularly inspiring and illustrative of entrepreneurial foresight. In 1995, Agrawal embarked on what seemed an audacious venture, launching WorldLink with just a personal computer and a modem. Today, WorldLink has burgeoned into Nepal's largest internet service provider, a testament to his unwavering vision and strategic leadership. His entrepreneurial spirit was not confined to mere service provision; under his guidance, WorldLink spearheaded the evolution of internet technology in Nepal, transitioning from rudimentary telephone line-based internet to advanced Metro Ethernet, and now boasts the nation's most extensive fiber-to-the-home network. This infrastructure now carries approximately half of Nepal's total internet traffic, underscoring its critical role in the country's digital ecosystem. Crucially, Agrawal's leadership extended beyond urban centers, playing an historic role in extending high-speed broadband to the geographically challenging and remote regions of Karnali. This commitment to digital inclusion has significantly contributed to Nepal's standing as one of the leading countries in South Asia for high broadband access, fostering economic development and social equity through connectivity. The impact of other regional pioneers is equally profound. Neeraj Sonkar of India was instrumental in launching the country's first commercial internet service through Videsh Sanchar Nigam Limited (VSNL) in 1995. Concurrently, Suchit Nanda, another Indian pioneer, introduced thousands to the world of online communication via Bulletin Board Systems even before the advent of commercial internet. In Bangladesh, Sumon Ahmed Sabir has contributed tirelessly to the technology sector for three decades, including the development of the renowned BDIX. Bhutan's Jichen Thinley made long-lasting contributions to the early internet development and the expansion of the first mobile phone network in his country, while Tariq Mustafa played a significant role in expanding internet access and infrastructure in Pakistan. This initiative to honor these 'behind-the-scenes' technology heroes emerged during the first regional conference held after the COVID-19 pandemic. While millions now enjoy seamless digital lives, the contributions of the technicians, operators, and visionaries who laid the groundwork for these networks are rarely discussed outside specialized technical circles. This recognition campaign aims to celebrate these invisible champions and preserve the history of the internet in the Asia-Pacific region. Such acknowledgments are vital for investors, highlighting the long-term vision, significant capital investment, and relentless innovation required to build and sustain critical digital infrastructure. The success stories of companies like WorldLink, driven by such pioneers, demonstrate the immense potential and ongoing growth opportunities within the telecommunications and digital services sectors, which are fundamental to national economic prosperity and global competitiveness. The conference in Kathmandu served as a powerful reminder that technology is not merely a modern tool but the culmination of decades of dedication, hard work, and foresight from countless technology enthusiasts.
Inland Revenue Department Confirms July 17 Start Date for Electricity VAT, Resolving Implementation Confusion
The Inland Revenue Department (IRD) has provided crucial clarity regarding the implementation of Value Added Tax (VAT) on electricity consumption, announcing that the new tax regime will officially commence from Shrawan 1, 2081 (July 17, 2024). This definitive statement aims to resolve widespread confusion and public criticism that arose following the Nepal Electricity Authority's (NEA) premature collection of VAT from consumers. The introduction of VAT on electricity is a significant fiscal measure outlined in the Economic Act 2083 (2026/27), which amended the existing VAT Act 2053 (1996/97). Under the new provisions, final consumers of electricity services will be subject to a 5% VAT, while other entities will face a 13% VAT rate. This tiered approach is designed to differentiate between household consumption and commercial or industrial usage, aiming to balance revenue generation with consumer affordability. The government had initially unveiled this provision in the budget for the current fiscal year 2083/084, presented on Jestha 15 (May 28/29). The budget specifically stipulated that customers consuming more than 50 units of electricity would be liable for the 5% VAT. The intent behind this threshold was likely to exempt low-income households or those with minimal electricity usage from the additional tax burden, focusing the collection on higher consumption tiers. However, the implementation process quickly became mired in controversy. Despite the budget's provisions and the IRD's subsequent clarification, the Nepal Electricity Authority (NEA) began collecting electricity tariffs inclusive of VAT from Ashar 1 (June 15/16), well in advance of the officially designated start date. This premature collection sparked considerable public outcry and criticism across various sectors, with consumers and businesses expressing frustration over the lack of clear communication and coordination among government bodies. The incident highlighted potential gaps in inter-agency communication and the need for a more synchronized approach to policy implementation. The IRD's latest announcement, confirming the Shrawan 1 (July 17) effective date, is a welcome step towards rectifying this confusion. For investors, such clarity in policy implementation is paramount. Uncoordinated actions by state-owned enterprises or regulatory bodies can create an unpredictable business environment, impacting consumer confidence and operational costs for industries reliant on electricity. The initial misstep by NEA could have led to cash flow issues for businesses that had not factored in the immediate VAT increase, or caused significant public relations challenges for the government. From an economic perspective, the introduction of VAT on electricity is expected to bolster government revenue, which is crucial for funding public services and infrastructure projects. However, it also implies an increase in the cost of living and doing business. While the 5% rate for final consumers is relatively modest, its cumulative effect on household budgets and the operational expenses of small and medium-sized enterprises (SMEs) could be noticeable. The 13% rate for other entities will directly impact industrial production costs, potentially influencing pricing strategies and overall inflation. This episode underscores the critical importance of transparent communication and robust coordination between policy-making bodies (like the Ministry of Finance and IRD) and implementing agencies (like NEA). For a developing economy like Nepal, attracting and retaining investment hinges on a stable and predictable regulatory framework. Investors closely monitor such developments as they provide insights into the government's capacity for effective governance and policy execution. The IRD's intervention, though reactive, demonstrates an effort to restore order and ensure adherence to legal provisions, which is a positive sign for regulatory oversight. Going forward, clearer guidelines and phased implementation strategies will be essential to prevent similar disruptions and foster a more conducive environment for economic growth and public trust.
Nepal's Shinta Mani Mustang Crowned World's Best Luxury Hotel by Robb Report, Elevating Nation's Global Tourism Profile
Nepal has achieved a remarkable milestone on the global luxury tourism stage, with Shinta Mani Mustang, a breathtaking resort nestled in the Himalayan district of Mustang, being named the world's best hotel. This prestigious recognition comes from Robb Report, an internationally acclaimed luxury lifestyle magazine, which unveiled its "50 Best Luxury Hotels in the World for 2026" list. Surpassing hundreds of historic and renowned hotels, resorts, and safari camps worldwide, Shinta Mani Mustang secured the coveted top position, marking a significant moment for Nepal's burgeoning tourism industry. The rigorous selection process for this esteemed list involved a panel of 24 world-renowned tourism experts from Robb Report. These specialists meticulously evaluated properties based on stringent criteria, including the quality of service, unique geographical setting, management excellence, and the authenticity of the guest experience. Shinta Mani Mustang's ability to blend unparalleled luxury with profound cultural immersion and natural beauty evidently resonated deeply with the judges, propelling it to the pinnacle of global hospitality. Following Nepal's Shinta Mani Mustang in the top spot, the list features other exceptional properties: Singita Kwitonda Lodge in Rwanda at second place, Hope Lodge in Scotland at third, Park Hyatt Tokyo in Japan at fourth, and Shakti 360° Leti in India at fifth. The subsequent rankings include Royal Mansour in Morocco (sixth), Villa d'Este in Italy (seventh), Amanpuri in Thailand (eighth), Claridge's in the UK (ninth), and Laucala Island Resort in Fiji (tenth), all illustrious names in the luxury travel sector. Designed by the celebrated Bill Bensley, Shinta Mani Mustang is strategically located on the banks of the Kali Gandaki River, approximately 2,800 meters above sea level. The resort masterfully integrates traditional Himalayan and Tibetan architectural styles, utilizing local Baglung stone to create 29 exclusive luxury suites. Each suite boasts expansive glass windows that offer unobstructed, panoramic views of the majestic Nilgiri and Dhaulagiri mountain ranges, providing guests with an immersive connection to the awe-inspiring natural landscape. Beyond its stunning aesthetics and luxurious accommodations, Shinta Mani Mustang offers an array of unique experiences designed to engage and enrich its guests. These include guided Himalayan treks, horseback riding adventures, traditional archery, and visits to the 800-year-old Lubra village. Guests can also delve into the spiritual heritage of the region through studies of Bon Buddhism and experience the ancient Amchi traditional Tibetan medicine system, offering a holistic approach to wellness and cultural exploration. This international accolade sends a powerful message to the global community: Nepal is not merely a destination for adventurous trekking but also a premier hub for world-class luxury tourism. Such recognition is instrumental in diversifying Nepal's tourism appeal, attracting a more affluent demographic of travelers who seek exclusive, high-quality experiences. This shift can significantly boost foreign exchange earnings, create sustainable employment opportunities for local communities, and stimulate growth in related sectors such as high-end hospitality, local artisan crafts, and specialized transport services. For investors, this news underscores the growing potential within Nepal's luxury tourism and hospitality sector. It highlights the country's capacity to develop and sustain world-class facilities that meet international standards, drawing attention to investment opportunities in premium resorts, eco-lodges, and related infrastructure. As Nepal continues to enhance its global image as a safe and desirable destination, such prestigious awards will undoubtedly contribute to a more robust and diversified national economy, moving beyond traditional revenue streams and fostering sustainable growth in its vibrant tourism industry.
Nepal Stock Exchange Initiates CEO Selection Process Amidst Investor Anticipation
The Nepal Stock Exchange (NEPSE) has officially commenced the rigorous process for appointing its new Chief Executive Officer (CEO), a development keenly watched by investors and market participants. This crucial step follows the resignation of the previous CEO, Chudamani Chapagain, on Ashar 22 (July 6/7), ahead of the completion of his tenure, leaving a significant leadership void at the helm of the nation's sole stock exchange. The Ministry of Finance (MoF) has taken the lead in this selection, underscoring the government's direct involvement in the strategic direction of NEPSE. To oversee this critical appointment, the Ministry of Finance has constituted a three-member selection committee. This high-level committee is chaired by Joint Secretary Mahesh Acharya, who also heads the Financial Sector Management Division within the Ministry. The formation of this committee was confirmed by Amrit Lamsal, the current Chairman of NEPSE and also a Joint Secretary at the Ministry of Finance. Mr. Lamsal stated that the committee is now tasked with developing a comprehensive procedure for the selection process and is expected to issue a public advertisement inviting applications in national dailies in the coming days. The appointment of NEPSE's CEO is a process fraught with unique complexities, stemming from the ownership structure of the exchange. While NEPSE is legally registered as a public limited company under the Company Act, and the 'Securities Market Operation Bylaws, 2064' (Rule 14, Sub-rule 1) explicitly grants the NEPSE Board of Directors the authority to appoint its Chief Executive, this legal provision is largely superseded in practice. The government of Nepal, along with Nepal Rastra Bank, holds a majority stake in NEPSE. This majority ownership effectively designates NEPSE as a 'public body,' meaning that the appointment of its chief executive falls under the purview of the Cabinet, rather than solely the Board. This dual framework highlights a persistent tension between legal autonomy and governmental control. As long as the government maintains its majority shareholding, the bylaw granting appointment authority to the Board remains largely inactive. This approach is further reinforced by the 'Standards for Appointment and Nomination of Officials of Government Public Bodies, 2077,' issued by the Cabinet, which mandates an open and competitive process for selecting leaders of government-owned entities. This standard explicitly requires the relevant ministry to form a 'Selection and Recommendation Committee' to identify and propose suitable candidates. The government's rationale for this centralized approach is to ensure transparency, accountability, and to mitigate potential political interference that might arise if the Board were to make direct appointments. Historically, previous NEPSE CEO appointments have followed a similar trajectory, with the Cabinet making the final decision based on recommendations from selection committees formed by the Ministry of Finance. However, each selection committee retains the autonomy to formulate its own specific procedures and define the precise qualification and evaluation criteria for candidates. This means that while the overarching framework remains consistent, the current process might introduce new conditions or provisions, which will only become clear once the public notice is published. The selection process is anticipated to unfold in several distinct stages: 1. **Public Advertisement:** The committee will issue a public notice in national dailies, inviting applications within a specified timeframe. Prospective candidates will be required to submit their academic qualifications, professional experience, and, critically, a detailed 'Business Plan' outlining their vision for NEPSE's improvement and the development of the capital market. 2. **Shortlisting:** Based on an initial evaluation of the submitted applications and the proposed business plans, a shortlist of qualified candidates will be prepared. 3. **Presentation and Interview:** Shortlisted candidates will then be invited to present their business plans to the committee and undergo a comprehensive interview process. 4. **Recommendation:** The selection committee will recommend the top three candidates to the Cabinet, channeled through the Ministry of Finance. 5. **Cabinet Decision:** From the three recommended individuals, the Cabinet will make the final decision, appointing one candidate as the new CEO of NEPSE for a four-year term. The capital market community, including individual and institutional investors, is closely monitoring this appointment. The new CEO will face the formidable task of steering NEPSE towards greater efficiency, transparency, and technological modernization. Expectations are high for a leader who can not only navigate the existing regulatory landscape but also champion reforms that foster a more vibrant, liquid, and investor-friendly stock market in Nepal. The successful and transparent conclusion of this selection process is paramount for bolstering investor confidence and driving the sustained growth of Nepal's burgeoning capital market.
Widespread Unrest and Sunsari Incident Signal Deepening Socio-Economic Crisis in Nepal, Raising Investor Concerns
Nepal is currently navigating a highly sensitive and transitional period, marked by significant social, economic, and political challenges. Public frustration with various state institutions and governmental tiers has reached a boiling point, leading to simultaneous protests across diverse sectors and demographics. From manpower agencies and educational activists to landless communities and victims of financial exploitation by cooperatives and microfinance institutions, a chorus of discontent now echoes through the streets, raising serious questions about peace, economic stability, and public trust in the state. The gravity of the situation was starkly underscored by a recent violent incident in Sunsari. On Sunday night, a dispute between two religious groups in Captainganj, Dewanganj Rural Municipality, escalated dramatically. Police intervention to control the clash resulted in at least one fatality and several injuries, according to official reports. Following the incident, local authorities imposed an indefinite curfew from Monday morning to restore order, yet protests have persisted despite these restrictions. The Ministry of Home Affairs has since formed an investigation committee to probe the events. This Sunsari shooting serves as a grim illustration of how quickly public dissatisfaction can turn violent and uncontrollable. It highlights the fragility of the trust between citizens and the state apparatus, particularly when clashes between security forces and protesters lead to casualties. The incident is not merely an isolated local event but a potent warning sign emanating from the widespread discontent simmering across the nation. When avenues for dialogue close and citizens' grievances are consistently ignored, street confrontations inevitably escalate into such forms of unrest. The current crisis is multi-faceted, affecting not just one sector but fundamental pillars of society. Dr. Govinda KC, who was once lauded by current government figures for his hunger strikes against previous administrations, is once again on a fast, galvanizing the entire health sector. Cooperative and microfinance victims, having lost their life savings or trapped in predatory loans, are demanding justice, eroding public confidence in the financial sector. The ongoing struggle of landless communities for housing and land rights frequently turns violent due to inadequate state policies. The education sector is in turmoil, with teachers and students protesting a new education bill, threatening the future of millions of children. Furthermore, manpower agencies and foreign employment entrepreneurs are expressing frustration over uncoordinated policies regarding labor migration, free-visa free-ticket implementation, and broader reforms. While protests are a normal part of any democratic process, their escalation from dialogue to confrontation can have far-reaching consequences beyond individual incidents. Such unrest can undermine trust in the state, disrupt social harmony, and severely impact economic activities. Nepal's economy is still in a recovery phase, with sectors like tourism, construction, industry, foreign employment, and private investment striving for momentum. Persistent protests introduce significant uncertainty for investors, both domestic and foreign. Any entrepreneur or international investor prioritizes political and social stability when considering capital deployment. If messages of widespread protests, strikes, clashes, and security challenges continue to emanate from Nepal, new investments are likely to slow down considerably. The implications are profound. Disruptions in the education sector directly affect students and parents, hindering human capital development. The protests by cooperative and microfinance victims can weaken confidence in the entire financial system; if citizens perceive their savings as unsafe, the banking sector and broader financial stability could be jeopardized. The landless movement presents another sensitive issue, balancing the need for public land conservation and rule of law with the humanitarian aspect of housing and rehabilitation. Any action without a clear rehabilitation plan risks exacerbating social discontent. These seemingly disparate movements are psychologically interconnected. The dissatisfaction of one group can amplify the protests of another, creating immense social pressure. History demonstrates that movements starting with distinct issues can coalesce into broader political discontent. In this context, the state's role is critical. Viewing protests solely as security challenges will not yield long-term solutions. Similarly, if protesters resort to violence or damage public property, the moral authority of their demands is weakened. Nepal's most pressing need is for dialogue, transparency, and the restoration of trust. While the demands of each protest may differ, a common thread of expectation for good governance, accountability, and justice runs through them all. If the government fosters an environment for timely dialogue, these movements can move towards resolution. Conversely, if dialogue falters and mistrust deepens, social tensions are likely to become even more complex. The Sunsari shooting serves as a stark message: when the gap between protests and the state widens, society ultimately pays the price. The strength of democracy lies not in street confrontations and security forces, but in dialogue, legal processes, and consensus. This is both the current challenge and the potential path to a lasting solution. Simultaneous unrest across multiple sectors, coupled with incidents like Sunsari, risks pushing the entire nation into a deeper crisis, characterized by severe security challenges, economic stagnation, erosion of public trust in democratic institutions, and social anarchy. The Sunsari incident is a grave warning. The state must move beyond a 'security and force' approach to protests. The need of the hour is empathetic and meaningful dialogue. The government must commit to addressing the genuine demands of victims (e.g., return of cooperative savings, scientific management of landless issues, transparent education and employment policies). Furthermore, political leaders and activists, particularly from the ruling party, must cease spreading exaggerated information and accusations on social media, which only inflames tensions. As evidenced by last year's Gen Z movement, force and social media incitement cannot extinguish the fires of discontent.
Supreme Court Mandates Separate Reserve Fund for Premium Share Proceeds, Bolstering Investor Protection and Regulatory Oversight
The Supreme Court of Nepal has issued a landmark directive that is set to significantly reshape the landscape of premium share issues in the country's capital market. In a pivotal ruling stemming from a writ petition concerning the Initial Public Offering (IPO) of Himalayan Reinsurance Limited (HRL), the apex court has mandated that all amounts collected above the face value of shares must be meticulously segregated and maintained within a dedicated reserve fund. This directive underscores a robust commitment to safeguarding investor interests and ensuring stringent compliance with existing legal frameworks. A joint bench comprising Justices Dr. Manoj Kumar Sharma and Shree Kanta Paudel delivered this crucial judgment, emphasizing that the responsibilities of regulatory authorities extend far beyond merely granting permission for premium share issuances. The court asserted that regulatory bodies bear a paramount duty to conduct exhaustive examinations of prospectuses and all accompanying documentation submitted by issuing companies before providing their approval for any premium-priced share offering. In the specific context of Himalayan Reinsurance, which had issued shares at NPR 206 per share against a face value of NPR 100, the court highlighted the imperative for regulators to ensure comprehensive investor protection and strict adherence to all legal prerequisites prior to approval. This ruling casts a spotlight on the Nepal Insurance Authority and the Securities Board of Nepal (SEBON), urging them to exercise heightened diligence and scrutiny in their future assessments of premium share issues. Furthermore, the court explicitly directed these authorities to prohibit any premium share issuances that contravene existing laws. To operationalize this directive, the Supreme Court has instructed the Nepal Insurance Authority, SEBON, and Himalayan Reinsurance to collaboratively establish an effective mechanism for the separate management of funds collected as premium. Crucially, the court's interpretation clarifies that the premium amount – the sum collected over and above the face value of shares – is not to be treated as ordinary income. This means it cannot be freely distributed as dividends or utilized for general operational expenses by the company. For Himalayan Reinsurance, where a premium of NPR 106 was collected per share, this additional sum must now be managed distinctly, in strict accordance with applicable legal provisions. The court has tasked the concerned regulators with coordinating and implementing the necessary arrangements for the proper management of these premium proceeds, drawing upon the provisions of the Companies Act, 2063, and the Insurance Act, 2079. This necessitates the development of a clear regulatory framework outlining how such funds should be held and the specific circumstances under which they may be accessed or utilized. Despite these significant directives, it is important to note that the Supreme Court did not invalidate Himalayan Reinsurance’s IPO. The writ petition challenging the company's premium-priced share issue was dismissed, with the court concluding that there was insufficient legal basis to annul the completed share issuance and allotment process. The court also took into consideration the fact that the IPO and subsequent share allotment had already been finalized while the petition was under review, thus finding no justification for their cancellation. The judgment affirmed that Himalayan Reinsurance had met the requisite criteria for issuing shares at a premium, including consistent profitability over the preceding three financial years, a net worth per share exceeding its paid-up capital, and compliance with all relevant credit-rating and other regulatory requirements. The court's decision meticulously interpreted the provisions of the Insurance Act, 2079, in conjunction with the Companies Act, 2063, and the Securities Registration and Issue Regulations, 2073. While the Insurance Act mandates companies to call for 100 percent of the face value when inviting public subscriptions, the Companies Act and securities laws permit eligible institutions to issue shares at a premium, provided they fulfill prescribed conditions. The Companies Act defines shares sold above their face value as premium shares, with the Securities Registration and Issue Regulations detailing the specific criteria an institution must satisfy to qualify for such an issuance. This Supreme Court ruling carries profound implications for the entirety of Nepal’s capital market, particularly for future premium-priced share issues. While it refrained from canceling a completed IPO, it has unequivocally underscored the heightened responsibility of regulatory authorities. They are now explicitly tasked with conducting exhaustive scrutiny of a company’s financial health, prospectus, legal justifications, and all pertinent documents before granting approval for premium issues. The ruling also firmly asserts that regulatory approval must never compromise corporate governance standards or erode investor confidence within the securities market. In essence, the court has directed the Nepal Insurance Authority and SEBON to usher in an era of greater transparency and more robust regulatory oversight for all forthcoming premium share issuances. This landmark decision is anticipated to fundamentally alter how companies manage premium proceeds and how regulators collaborate to protect investors, ensuring that funds collected above the face value of shares are utilized strictly in accordance with the law, thereby fostering a more secure and trustworthy investment environment.
Mechi Industries Signs MoU with Laxmi EN FAB for Production Capacity Expansion
Nepal’s leading AAC block manufacturer, Mechi Industries Limited, has signed an MoU with India-based technology provider Laxmi EN FAB Pvt. Ltd. to increase its production capacity by an additional 5,000 cubic metres of AAC blocks per month. The company is also expanding its product portfolio by investing in modern plants and equipment to produce mortar adhesive, ready-mix plaster, tile adhesive and wall putty. In addition, Mechi Industries has received three international ISO certifications: ISO 9001:2015 for Quality Management, ISO 14001:2015 for Environmental Management, and ISO 45001:2018 for Occupational Health and Safety, reflecting its commitment to quality, environmental responsibility, corporate governance and workplace safety.
Student Protests Erupt Over Alleged Government Interference in Public Service Commission, Raising Concerns About Governance and Meritocracy
Kathmandu, Nepal – Students preparing for examinations conducted by the Public Service Commission (Lok Sewa Aayog) have intensified their protests at Maitighar, expressing strong dissatisfaction with what they perceive as direct government interference in the autonomous body's functions. The demonstrations highlight growing concerns over the integrity of public service recruitment and the principle of meritocracy in Nepal. The core of the students' grievance revolves around a decision made during a secretary-level meeting on July 20 (Shrawan 4), chaired by the Chief Secretary. Specifically, they are demanding the immediate annulment of point number 11 of this decision. This contentious clause mandates that the Lok Sewa Aayog must obtain prior approval from the Prime Minister's Office and the Council of Ministers before publishing any advertisements for job vacancies. Protesting students argue that this directive directly infringes upon the constitutional and autonomous status of the Lok Sewa Aayog, undermining its independence and ability to operate without political influence. Deepak Regmi, a prominent voice among the protesting students, articulated their position, stating that the Lok Sewa Aayog, as a constitutional body, must be allowed to conduct its recruitment processes independently, in accordance with its enshrined powers. He emphasized that the government's decision weakens the commission's autonomy and sets a dangerous precedent for the future of public administration in Nepal. The students contend that requiring approval from the executive branch for a constitutional body's core function is unconstitutional and compromises the fairness and transparency of the recruitment process. Beyond the immediate demand for the repeal of point 11, the students have also put forth additional proposals aimed at reforming the public service. They advocate for a policy where only 10 percent of current contract-based employees are retained based on their performance, with the remaining 90 percent of positions to be filled permanently through open and competitive examinations. This demand underscores a broader call for merit-based appointments and a reduction in politically motivated contractual hirings. The government's decision, a 22-point directive signed by Chief Secretary Govinda Bahadur Karki, also stipulates that no government office can create new positions in the current fiscal year without the explicit approval of the Prime Minister's Office and the Council of Ministers. While this measure might be presented as a step towards fiscal discipline, students view it as a tool that could be used to control the Lok Sewa Aayog's functions and limit opportunities for new, qualified candidates to enter public service through fair competition. For investors, such developments in governance and public administration are critical indicators of a country's institutional stability and commitment to the rule of law. A robust, independent Public Service Commission is fundamental to ensuring a merit-based civil service, which in turn leads to efficient and transparent public service delivery. Any perceived erosion of this independence can signal a weakening of governance structures, potentially impacting investor confidence. A stable and predictable regulatory environment, underpinned by strong, autonomous institutions, is a cornerstone for attracting and retaining both domestic and foreign investment. The protests, therefore, are not merely a student issue but reflect deeper concerns about the integrity of national institutions, which are vital for Nepal's long-term economic development and stability. The slogans carried by the protesters, such as 'Don't snatch the right to open competition' and 'Stop political favoritism in administration,' resonate with the broader principles of good governance that are essential for a thriving economy.
Institutional Malpractice and the Misuse of Public Funds in Nepal's Stock Market
A deeply concerning and alarming trend is taking root in Nepal's share market, directly jeopardizing the financial future of millions of ordinary investors. The very institutions entrusted with safeguarding and growing public wealth — mutual funds, insurance companies, and portfolio management services (PMS) — are increasingly implicated in practices that amount to a profound betrayal of trust. Ordinary citizens, having toiled diligently for their hard-earned money, place their savings with these entities, hoping for secure and consistent returns. However, what is unfolding in the secondary market is a stark contrast to this expectation. These so-called "experts" and institutional investors are allegedly engaging in the gross misuse of billions of rupees belonging to the public. Instead of prudent investments, they are reportedly acquiring shares of financially distressed, non-dividend-paying, and near-bankrupt companies at inflated prices. This isn't merely a case of poor investment decisions; it points towards a systemic issue involving institutional collusion, corruption, and potentially, financial crime. The long-term implications for investor confidence and market integrity are severe, eroding the foundational trust necessary for a healthy capital market. One of the most contentious aspects highlighted is the "expertise" seemingly propped up by the IPO quota. Nepali law grants mutual funds a special privilege: a 5% reserved quota in every Initial Public Offering (IPO). Given that IPO shares in Nepal frequently double or even triple in value upon listing, this provides a virtually guaranteed, risk-free profit avenue for these funds. Yet, despite this significant and assured advantage, the dividend history and overall financial health of many of these funds remain dismal. This raises a critical question: what would be the fate of these mutual funds without this lucrative IPO quota? It is plausible that many, if not most, would have ceased operations long ago, unable to sustain themselves by consistently investing public money in "junk" shares in the secondary market. This protected quota, therefore, appears to serve as a shield, masking their operational inefficiencies and questionable secondary market dealings. The ease of this guaranteed income stream also prompts a serious inquiry into whether it contributes to a lack of rigorous scrutiny and investigation by regulatory bodies into their internal transactions. The silence of regulatory bodies like the Nepal Securities Board (SEBON) and Nepal Stock Exchange (NEPSE) in the face of such widespread market distortions, where public money is funneled into worthless companies, is deeply concerning. This is no longer a time for mere statements or passive observation; it demands decisive action. To safeguard public investments, SEBON must issue stringent directives, without a moment's delay, compelling institutional investors to allocate funds exclusively to strong, stable companies with a proven track record of consistent dividends. The current regulatory framework, while existing, appears insufficient to curb these malpractices, necessitating a more proactive and interventionist approach. Immediate and robust intervention from regulatory authorities is imperative. Firstly, SEBON must, within 24 hours, issue strict guidelines imposing investment limits and stringent criteria. This would explicitly prohibit mutual funds and other institutional investors from purchasing shares of companies that do not pay dividends, are consistently incurring losses, or possess negative net worth from the secondary market. Such a directive would serve as a crucial barrier against reckless investment. Secondly, NEPSE must establish a sophisticated system for meticulous monitoring of suspicious transactions. Should any fund or insurance company suddenly begin acquiring substantial quantities of shares from financially weak companies, NEPSE should immediately halt such transactions and launch a thorough investigation into potential internal collusion and manipulation. This proactive surveillance is vital to detect and prevent illicit activities before they cause significant damage. The persistent question remains: why does public money continue to flow into companies that offer no dividends? Despite these institutions boasting large teams of experts, including Chartered Accountants, and sophisticated market research mechanisms, their continuous acquisition of shares from financially failing companies strongly suggests underlying insider trading and commission-driven schemes. It appears that these institutions are being exploited as a dumping ground for distressed assets. Unscrupulous promoters and large share players allegedly entice officials from mutual funds, insurance companies, and PMS with hefty commissions to offload their "toxic" and failing shares. This creates a perverse incentive where the risk is entirely borne by the public, while the operators of these funds and PMS services continue to collect annual management fees and commissions from public funds, irrespective of the investment's performance. This detachment from risk encourages them to gamble in irresponsible sectors. Furthermore, there is a growing prevalence of artificial price inflation, or "cornering," where the share prices of companies with no dividend history are artificially boosted, trapping public money, while significant internal transactions and illicit gains are made behind the scenes. The stark contrast between the declared losses of these funds and insurance companies and the burgeoning wealth of their Chief Executive Officers (CEOs) and top management is alarming. While ordinary investors face financial ruin, the personal assets and bank balances of those at the helm of these institutions appear to flourish. This disparity demands immediate scrutiny. The personal assets of CEOs and directors of institutions found to be misinvesting public money must be brought under the scanner without delay. SEBON, NEPSE, and the Nepal Insurance Authority must jointly initiate forensic audits of such questionable investment decisions. If found guilty, those responsible must face severe legal consequences, including asset forfeiture and imprisonment, to restore accountability and deter future malpractices. In conclusion, the notion that institutional investors inherently bring stability to the market has proven to be a dangerous illusion in the Nepali context. To protect their investments, ordinary citizens must become more vigilant and assertive. It is crucial for investors to regularly review the monthly Net Asset Value (NAV) reports of the mutual funds they have invested in, scrutinizing the portfolio holdings. Furthermore, attending Annual General Meetings (AGMs) and vociferously questioning the board of directors and CEOs about investment strategies and performance is paramount. Public money cannot, and must not, be allowed to become a tool for personal gain or market manipulation. Until the perpetrators within insurance companies and mutual funds who are responsible for squandering billions of rupees of public money on non-dividend-paying companies are brought to justice, Nepal's share market cannot achieve genuine transparency and safety. SEBON and NEPSE must cease their delay and take immediate, decisive action to restore integrity and investor confidence in the market.
Significant Drug Bust in Ghorahi Leads to Three Arrests and Seizure of Contraband
In a notable operation underscoring the ongoing commitment of law enforcement agencies to combat illicit activities, police in Ghorahi Sub-Metropolitan City have successfully apprehended three individuals in connection with the possession and alleged trafficking of illegal drugs. The arrests, which unfolded in a phased manner, led to the seizure of brown sugar-like substances, a digital weighing scale, and a substantial amount of cash, signaling a significant blow to local drug networks. The initial phase of the operation commenced in Ghorahi Sub-Metropolitan City-15, New Road, where authorities from the Warda Police Office Ghorahi intercepted two individuals. Identified as 28-year-old Sudip Chaudhary, a resident of Ghorahi Sub-Metropolitan City-4, and 20-year-old Devika Shrestha, residing in Ghorahi Sub-Metropolitan City-13, the duo was found in possession of approximately 120 milligrams of a substance suspected to be brown sugar, along with NPR 16,000 in cash. Their apprehension marked the beginning of a more extensive investigation into the supply chain of these illegal narcotics. Following their initial interrogation, critical information emerged, pointing towards a larger network. The investigation swiftly led law enforcement to Mahendra Chaudhary, a 40-year-old resident of Ghorahi Sub-Metropolitan City-18, Dhodeni. It was revealed that Sudip Chaudhary and Devika Shrestha had allegedly procured the illicit substances from Mahendra Chaudhary. Acting on this intelligence, police conducted a thorough search of Mahendra Chaudhary's residence. The search proved fruitful, yielding a more substantial cache of contraband. Officers discovered approximately 770 milligrams of the brown sugar-like substance, a digital weighing scale—an instrument commonly used in the precise measurement and packaging of drugs for distribution—and a significant sum of NPR 568,170 in cash. The presence of the digital scale and the large amount of cash strongly suggests involvement in drug distribution activities. Consequently, Mahendra Chaudhary was also taken into custody. The successful execution of this operation by the Warda Police Office Ghorahi highlights the vigilance and proactive measures undertaken by local law enforcement to maintain public order and safety. The police have confirmed that all three individuals are currently under investigation, with further inquiries underway to uncover the full extent of their network and bring all involved parties to justice. This incident serves as a stark reminder of the persistent challenges posed by drug abuse and trafficking within communities. From a broader societal and economic perspective, such law enforcement successes, while seemingly localized, contribute significantly to the overall stability and security of a region. A robust and effective legal framework, coupled with diligent policing, is a fundamental pillar for fostering an environment conducive to economic growth and investment. Investors, both domestic and international, prioritize regions characterized by strong rule of law, low crime rates, and predictable governance. While a single drug bust might not directly impact market indices, the consistent and visible efforts of authorities to curb illegal activities instill confidence in the administrative capabilities of the state. This confidence is crucial for attracting capital, encouraging entrepreneurial ventures, and ensuring the long-term sustainability of economic development. The ongoing commitment to maintaining law and order, as demonstrated by this operation, indirectly supports the broader economic landscape by ensuring a safer and more predictable environment for businesses and citizens alike. The police continue their diligent work, emphasizing the importance of community cooperation in eradicating such societal scourges.
NEPSE Index Plummets by 33.28 Points to Settle at 2,701.32 Levels ; Overall Turnover Crosses 6 Arba
The Nepal Stock Exchange (NEPSE) recorded a sharp loss today, losing by 33.28 points (1.21%) to close at 2,701.32. This follows a gain of 7.88 points in the previous trading session. Technical Insight: Nepse slighty deeps after some profit taking near term supports are around 2680 -2660. 2750 Resistance needs to be break to touch the key Resistance at 2800-2850. The benchmark index opened at 2716.42 and fluctuated between an intraday high of 2,744.89 and a low of 2,693.03 before settling at the close. Total turnover for the day amounted to Rs. 6.08 Arba, with 13,925,337 shares traded across 360 companies through 69,803 transactions. The total market capitalization stood at Rs. 46.42 Kharba, with a float market capitalization of Rs. 15.67 Kharba. Reliance Spinning Mills Limited (RSML) topped the turnover chart, recording transactions worth Rs. 33.86 crores. The company’s stock closed at Rs. 3,240.00. Everest Colour Limited (ECL) led the gainers' list with a 14.99%. The stock closed at Rs. 748.70. Meanwhile, Aatmanirbhar Laghubitta Bittiya Sanstha Limited (ANLB) recorded the Highest fall, falling by 13.38%. The last traded price of the company was Rs. 5,768.00. Among sectors, the Mutual Fund registered the highest gain, up 0.15%, while Manufacturing And Processing recorded the highest loss, down by 2.32%. Top Buyer Broker's Top 10 Bought Companies Top Seller Broker's Top 10 Sold Companies