Govt Forms Task Force to Assess Capital Market Conditions

The government has formed a four-member task force to review the condition of Nepal’s capital market amid growing concerns over market instability.

The Ministry of Finance on Friday, September 19 appointed Acting Executive Director of the Securities Board of Nepal (SEBON) Rupesh KC as the task force coordinator.

Other members include Nepal Rastra Bank Director Sharan Adhikari, Acting Executive Director of Nepal Stock Exchange Limited (NEPSE) Niranjan Phuyal, and Ministry of Finance Under Secretary Sharad Niraula, who will serve as member secretary.

The task force has been directed to examine existing distortions and challenges in the capital market and submit recommendations—along with a concrete action plan for systemic and procedural reforms—aimed at restoring investor confidence, within five days.

The Nepal Stock Exchange (NEPSE) declined sharply by  160.33 points on September 18, its first trading day following the change of government, closing 6% lower at 2,511.91 points before the regular trading hours.

When trading resumed after a long hiatus, the NEPSE index fell 4% within just two minutes, triggering the first circuit breaker and halting trading for 20 minutes. Upon reopening at 11:22 AM, the index dropped an additional 1% in a minute, activating the second circuit breaker and suspending trading for 40 minutes. Finally, the third circuit breaker was triggered at 12:06 PM after the market reopened at 12:03 PM, leading to the suspension of trading for the rest of the day.

The market remained close from September 9 to 17 due to severe political unrest and security concerns arising from the Gen Z-led protests.