NEPSE Alert: Government Prepares a Special Share Market Rescue Package

The Ministry of Finance is preparing a Capital Market Strengthening and Share Market Reform Plan after the Nepal Stock Exchange benchmark fell by nearly 400 points over roughly six months. The decline has also wiped out an estimated Rs. 7 trillion in market value, raising concerns over investor confidence and the broader economic impact of a weakening capital market. The government plans to prioritize the share-market package among several economic recovery measures being prepared following recent floods and landslides. The package is expected to focus on strengthening the capital market, improving investor confidence and creating a more organized investment environment, although specific measures have yet to be finalized. The government is also preparing separate packages for private-sector recovery, reconstruction financing and efforts to remove Nepal from the FATF grey list.