Saturday, April 2, 2011

NRB mulls steps to revive stock market

Nepal Rastra Bank (NRB) Governor Dr Yubaraj Khatiwada said on Thursday that the central bank is mulling to take steps for the revival of capital market which has been witnessing a protracted slowdown.

“Capital market has come to a proper shape after continued decline. NRB is preparing to come up with a plan to revitalize the share market,” said Khatiwada while inaugurating Central Depository System (CDS) and Clearing Ltd, which provides online-based trading in stock market.

On the occasion, Indian ambassador Rakesh Sood handed over the CDS application software and Clearing system to Tanka Prasad Paneru, chairman of Clearing Ltd.

India has provided a total assistance worth Rs 147.2 million to the company -- a subsidiary of Nepal Stock Exchange (Nepse) -- in the form of consultancy service and software application to modernize trading and transfer of securities in Nepal´s sole capital market.

On the occasion, Governor Khatiwada said CDS would prove to be instrumental in expanding and modernizing Nepal´s capital market.

On the occasion, ambassador Sood expressed hope that risks associated with paperwork and transaction costs of securities will be considerably reduced once CDS comes into operation.

Surbir Poudel, chairman of Securities Board of Nepal (Sebon) and Nepse general manager Shankar Man Singh also expressed confidence that ill-practices and procedural delay would end with the introduction of CDS in the capital market.

No comments: