Latest NEPSE News & Share Market Updates
Monsoon Fury Disrupts BP Highway, Stranding Travelers and Impacting Regional Economy; NEPSE Closed on Ashoj 5
Nepal's vital BP Highway, a critical artery connecting the Kathmandu Valley to the eastern Terai region, has been severely impacted by incessant monsoon rains. A temporary diversion at Roshi Khola, a crucial bypass for ongoing construction, was partially washed away by surging floods, bringing traffic to a complete standstill. This disruption, compounded by multiple landslides across various sections of the highway, has not only stranded hundreds of commuters and vehicles but also poses significant economic challenges for businesses and supply chains reliant on this route. The Bhaktapur Road Division Office confirmed the extensive damage, highlighting that the Roshi Khola diversion, a temporary solution put in place to facilitate permanent infrastructure development, succumbed to the relentless force of the monsoon-fed river. Beyond this critical point, sections like Charsau Besi, Chowkidada, and Gimtibesi have also experienced significant landslides, further isolating the region and exacerbating the logistical nightmare. This widespread disruption underscores the inherent vulnerabilities of Nepal's mountainous road networks, especially during the peak monsoon season. For an economy heavily dependent on road transport for goods and passenger movement, the blockage of the BP Highway carries substantial implications. Businesses involved in the supply of essential commodities, agricultural produce, and industrial raw materials between the capital and the eastern plains will face delays, increased costs, and potential losses. Similarly, the tourism sector, which often sees domestic travel during this period, will also feel the pinch as access to popular destinations along or beyond the highway becomes impossible. The ripple effect of such a prolonged closure can impact local markets, inflate prices, and disrupt the timely delivery of goods, ultimately affecting consumer confidence and regional economic stability. Authorities from the Bhaktapur Road Division have swiftly mobilized technical teams to assess the damage and initiate clearance operations. Officials have expressed optimism, stating that if the heavy rainfall subsides, they aim to restore traffic flow within approximately five hours. However, the continuous downpour presents a formidable challenge, hindering the progress of landslide removal and the reconstruction of the temporary diversion. The deployment of necessary manpower and equipment is underway, but the unpredictable nature of monsoon weather means that full restoration could take longer than initially projected. Travelers and transporters are strongly advised to exercise extreme caution and consider alternative routes, if available, or postpone non-essential travel until the situation stabilizes. In a related development, the Nepal Stock Exchange (NEPSE) will observe a public holiday on Ashoj 5 (Monday). While the specific reason for this holiday is often tied to various national or religious observances, its occurrence amidst widespread monsoon disruptions adds another layer to the current economic landscape. Investors and market participants should note this closure and plan their trading activities accordingly. The combined impact of infrastructure disruptions and market holidays can sometimes influence investor sentiment, particularly in sectors sensitive to logistics and supply chain efficiencies. As Nepal navigates the challenges posed by its monsoon season, the resilience of its infrastructure and the adaptability of its economic sectors will be continually tested.
Nepal Secures Thrilling Victory Against Afghanistan in Asian Games Cricket, Boosts Medal Hopes
Nepal has delivered a remarkable performance at the 20th Asian Games in Japan, securing a thrilling five-wicket victory over strong contenders Afghanistan in the men's T20 cricket competition. This significant win not only marks a pivotal moment in Nepal's campaign but also substantially bolsters the nation's aspirations for a medal in the prestigious multi-sport event. The match, characterized by its intense drama and strategic play, captivated audiences and showcased the burgeoning talent within Nepali cricket. Winning the toss, Afghanistan elected to bat first, a decision that initially seemed strategic on a pitch that offered a balance between bat and ball. However, the Nepali bowlers, demonstrating exceptional discipline and tactical prowess from the outset, quickly put Afghanistan under immense pressure. The powerplay overs proved particularly challenging for the Afghan top order, as they struggled to find rhythm and lost crucial wickets, preventing them from establishing a strong foundation for a formidable total. The tight bowling by Nepal's spin maestro Lalit Rajbanshi and the versatile all-rounder Kushal Bhurtel was instrumental in stifling Afghanistan's middle order. Their ability to maintain a restrictive line and length, coupled with intelligent variations, denied the Afghan batsmen the opportunity to accelerate the scoring rate, ultimately restricting them to a chaseable target. In pursuit of the target, Nepal's opening batsmen provided a composed and steady start, laying a crucial groundwork for the chase. Despite the inherent pressure of a high-stakes encounter, the middle-order batsmen displayed commendable responsibility and maturity. They navigated through challenging phases, building vital partnerships and ensuring that the required run rate remained manageable. Their calculated aggression and astute shot selection in the crucial final overs propelled Nepal towards victory, culminating in a triumphant finish that sent waves of excitement through the Nepali contingent and its supporters. This victory is more than just a win; it is a testament to the relentless dedication and rapid development of Nepali cricket on the international stage. Over recent years, Nepal's national cricket team has consistently demonstrated its potential, overcoming numerous challenges to compete with established cricketing nations. Such performances at major tournaments like the Asian Games are crucial for elevating the sport's profile within the country, inspiring a new generation of athletes, and attracting further investment in cricketing infrastructure and talent development. The team's journey, often marked by limited resources but boundless passion, resonates deeply with the national spirit, making every international success a source of immense national pride. This triumph against a formidable team like Afghanistan underscores Nepal's growing stature in the cricketing world and its capability to challenge higher-ranked opponents. The positive momentum generated by this win could have broader implications, subtly influencing national sentiment and potentially fostering a more optimistic outlook, which can indirectly contribute to a stable environment for economic activities. While not directly financial news, national achievements in sports can boost morale and national identity, elements that contribute to overall societal well-being. For investors, a nation that performs well on the global stage, whether in sports or other sectors, often projects an image of dynamism and capability. This victory strengthens Nepal's position in the Asian Games cricket tournament, significantly enhancing its prospects of securing a coveted medal, a feat that would be celebrated across the nation and further cement Nepal's reputation as a rising force in international sports. Separately, for the investor community, it is important to note that the Nepali stock market (NEPSE) will observe a public holiday on Ashoj 5 (Monday), and consequently, trading activities will remain closed on that day. This information, while distinct from the sports report, is crucial for market participants to plan their investment activities accordingly.
Nepal's Parliament Transforms PM's UNGA Climate Plea into National Action Plan, Eyes Regional Cooperation and Climate Justice
Nepal's Federal Parliament is set to elevate Prime Minister Balen Shah's historic address at the 81st United Nations General Assembly (UNGA) on the climate crisis and the devastating Bhote Koshi disaster into a core guiding principle for national policy. This significant move signals a proactive approach by the legislative body to translate international rhetoric into tangible domestic action and robust diplomatic strategy. Dr. Rojanath Pandey, Secretary of the Federal Parliament Secretariat and Member-Secretary of the all-party special committee formed by the House of Representatives to investigate the Rasuwa-Bhote Koshi disaster, confirmed that the Prime Minister's powerful speech would not remain confined to international discourse. Instead, parliament is intensifying efforts to convert it into a concrete, implementable national action plan. Dr. Pandey emphasized that the recent Bhote Koshi-Trishuli floods have not only caused immense local suffering but have also ignited a crucial global policy debate on the urgent need for climate resilience. He starkly reminded the public of the UN Secretary-General's warning four years ago in Nepal that "the roof of the world is collapsing," a prophecy now tragically unfolding before their eyes. "This profound injustice, inflicted upon us without our fault, has been powerfully and systematically articulated by the Prime Minister on the global stage," Dr. Pandey stated. The special committee, constituted on Ashoj 5 (September 22) with a three-month mandate and unanimous support from all ruling and opposition parties, has commenced an in-depth study across nine critical disaster-affected areas. This committee is not merely tasked with submitting a formal report; it aims to outline a clear framework for long-term reconstruction and a sophisticated diplomatic strategy. Dr. Pandey highlighted that the Prime Minister's six 'R's (likely referring to concepts like Reconstruction, Resilience, Responsibility, etc.) and his call for climate justice at the UNGA will serve as the guiding principles for the committee's work. The committee plans to ground these political and diplomatic directives in empirical data, gathered directly from the field, connecting with the experiences and suffering of the affected communities, and integrating scientific facts. Dr. Pandey underscored that the escalating crisis in the Himalayan region transcends national borders, characterizing it as a regional catastrophe. He cited the alarming increase in the intensity and frequency of disasters across the Himalayan range, from Uttarakhand in India to Sikkim and Bhutan. "If such a horrific calamity can strike the Bhote Koshi-Trishuli region, which we considered relatively safe, imagine the vulnerability of other areas," he questioned. This cross-border nature necessitates a collaborative approach. Consequently, Dr. Pandey strongly advocated for the immediate advancement of the trilateral mechanism and joint projects involving Nepal, India, and China, as proposed by the Prime Minister. He asserted that Nepal cannot overcome this monumental challenge alone. Furthermore, Dr. Pandey expressed strong indignation at the bureaucratic complexities hindering access to international climate finance. He firmly warned against viewing climate finance as charity or aid, asserting, "Climate finance is not alms given by a wealthy donor to the poor; it is an essential security measure to preserve our collective existence." He demanded the immediate abolition of the convoluted processes that delay the disbursement of funds, often leaving victims waiting for years. "This inhumane system of filling out forms while homes are burning must be abolished now," he declared. Recalling the bitter experience of past COP conferences where Nepal's critical issues often got lost in political rhetoric, Dr. Pandey, who also serves as the Secretary of the National Assembly's Development, Economic Affairs, and Good Governance Committee, revealed that Nepal will present a completely new and robust strategy at the 31st Climate Conference (COP31) in Turkey this November. He stated with conviction, "In previous COPs, our concerns were raised merely as political slogans, lacking sufficient scientific evidence to substantiate them. This time, Nepal will not arrive at COP empty-handed or with hollow slogans. The special parliamentary committee will prepare a white paper, armed with scientific evidence and data, to present Nepal's case in Turkey. Only by presenting fact-based claims can we truly achieve global climate justice and compensation." This strategic shift underscores Nepal's determination to secure meaningful international support and compensation for the disproportionate impact of climate change on its vulnerable Himalayan ecosystem and economy.
Youth-Led 'Hunkar Madhesh' Campaign Launched to Forge Alternative Political Force
A new political movement, 'Hunkar Madhesh' (Roar of Madhesh), has been officially launched by a collective of young individuals who have disassociated themselves from various established political parties. The campaign, announced recently in Kathmandu, aims to construct an alternative political force grounded in fresh ideas, dedicated to the betterment of both the nation and the Madhesh region. This initiative seeks to lay the groundwork for a robust political organization and cultivate a new generation of capable and qualified youth leadership. The core objectives of the 'Hunkar Madhesh' campaign are multifaceted. At its heart is the ambition to re-engage the younger generation in the political process, countering the prevailing disillusionment that has often deterred bright minds from public service. Speaking at the launch event, Keshav Jha, a prominent figure who recently departed from the Rastriya Mukti Party Nepal, articulated the campaign's vision. Jha critically observed that the widespread perception of politics as a 'dirty game' has unfortunately driven away many capable and learned individuals, leaving a vacuum in leadership that the campaign intends to fill. Jha further elaborated on the philosophical underpinnings of their movement, drawing parallels to ancient wisdom. He invoked the classical notion, often attributed to Plato, that political leadership should ideally reside with philosophers or the most knowledgeable individuals within society. He lamented the current state of affairs in Nepal, where, in his view, leadership is often assumed by those he metaphorically referred to as 'backbenchers,' rather than the most intellectually astute or morally upright citizens. This perceived disconnect, according to Jha, has led to a significant erosion of public trust and widespread disillusionment with the political system. The genesis of the 'Hunkar Madhesh' campaign also stems from a practical political reality. Jha revealed that the group's proposal to form a unified front with existing Madhesh-centric political parties was not accepted. This rejection underscored the need for an entirely new platform, one that could genuinely represent the aspirations of the youth and the Madhesh region without being constrained by the limitations or established practices of older parties. The campaign firmly believes that political leadership must be restored to its rightful place of respect and integrity, guided by individuals who are not only knowledgeable and educated but also self-reliant and committed to public welfare. For investors and those observing Nepal's economic landscape, the emergence of such a youth-led political movement holds significant implications. Political stability, good governance, and effective leadership are foundational pillars for a thriving economy and a predictable investment environment. A campaign focused on attracting capable individuals to politics and reforming the system could, in the long run, contribute to a more transparent and efficient policy-making process, which is crucial for business confidence and economic growth. The Madhesh region, being a vital economic corridor and agricultural hub, stands to benefit immensely from stable and effective political representation. Any movement that promises to bring about positive change in regional governance and foster greater youth participation could indirectly lead to improved infrastructure development, better resource management, and enhanced economic opportunities, thereby creating a more favorable climate for both domestic and foreign investment. The 'Hunkar Madhesh' campaign, therefore, represents a potential force for political rejuvenation, whose trajectory will be closely watched for its broader impact on Nepal's socio-political and economic future.
Hathway Investment Faces Significant Share Supply Pressure as Founders Announce Major Sale Post Lock-In Expiry
Hathway Investment Nepal Limited (HATHWAY) is currently at the center of investor attention following a significant announcement regarding the sale of a substantial block of shares by its founding shareholders. This development comes hot on the heels of the expiry of the lock-in period for a large portion of the company's founder and employee shares, raising crucial questions about market supply, price stability, and investor sentiment. Four key founding shareholders of Hathway Investment have formally notified the company of their intention to offload a total of 2,885,747 units of shares within the next three months. This represents a considerable volume that could significantly impact the stock's trading dynamics. The largest individual seller among them is Hemraj Dhakal, who plans to divest a massive 2,000,000 units. The remaining 685,747 units are to be sold by three other primary shareholders: Sumit Pradhan (348,686 units), Manish Dhakal (337,061 units), and Ambika Sharma Lamichhane (200,000 units). Hemraj Dhakal's proposed sale alone accounts for approximately 69% of the total announced divestment, underscoring the concentrated nature of this supply influx. The timing of this announcement is particularly noteworthy. The lock-in period for a substantial 20,533,500 units of founder and employee shares of Hathway Investment expired on Ashoj 2 (September 19). The market's immediate reaction was sharp, with HATHWAY's share price plummeting by 15% to NPR 499.80 on the first trading day following the lock-in expiry, down from NPR 588. This initial price correction signaled the market's sensitivity to the potential increase in share supply. Subsequent trading days have also seen high volumes for HATHWAY, with approximately NPR 444 million worth of shares traded on Ashoj 6 (September 23) alone. While high trading volume doesn't automatically imply complete absorption of the new supply, it does indicate significant market activity and investor interest in the stock amidst the evolving supply-demand dynamics. The decision by founding shareholders to sell a large portion of their holdings often sparks debate among investors. On one hand, such sales can be interpreted as a strategic move for capital restructuring, portfolio diversification, or personal wealth management. Large investors might seek to reallocate capital to other ventures or simply realize gains after a period of investment. On the other hand, a significant divestment by key founders can raise concerns about their long-term confidence in the company's prospects, especially if the company's stock price has performed strongly. It prompts questions like, "Why are major investors exiting?" and can potentially influence broader investor sentiment, leading to increased selling pressure. It is crucial to avoid drawing premature conclusions about the company's health or future performance based solely on these sales, as the true motivations are not always publicly disclosed. Hathway Investment Nepal Limited operates as an institutional investment company, often referred to as a holding company, with a mandate to invest across various sectors. Its founding structure involves a diverse group of established business houses and prominent figures in Nepal's capital market, including the IME Group, investment groups associated with Nirmal Pradhan, Chandra Prasad Dhakal (linked to IME Group and Global IME Bank), Kapil Kumar Dhakal, Sristi Dhakal, and Anjali Dhakal. The company is currently chaired by Yograj Sharma Kandel, an experienced figure in the capital market. This diverse ownership structure means that the motivations behind individual founder sales could vary widely, from strategic portfolio adjustments by large groups to personal financial planning by individual investors. The central economic question now facing Hathway Investment's stock is the market's capacity to absorb this impending supply. With the lock-in period lifted and a substantial additional block of shares announced for sale, the balance between supply and demand will be critical. If the proposed shares gradually enter the market and are met with sufficient demand, the impact on price might be managed. However, if demand falters in the face of increased supply, further downward pressure on the share price could materialize. Conversely, if the market demonstrates robust absorption, this process could ultimately enhance the company's free float and liquidity, potentially attracting a wider range of investors in the long run. Investors in Hathway Investment will need to closely monitor three key factors in the coming months: the actual volume of shares released into the market post-lock-in, the execution of the announced 2,885,747 unit sale by the founding shareholders, and the second market's demand response. It is important to remember that the current announcements are declarations of intent to sell, not immediate sales. The real impact will be determined by how many shares are actually sold, at what price points, and over what duration. This situation reignites a perennial question in the Nepali secondary market: should high-value founder sales be viewed as strategic diversification or as a precursor to increased market supply and potential price adjustments? The answer will unfold through the interplay of demand, supply, trading volumes, and ownership changes in the upcoming trading sessions.
Global Hotel Monitor 2026 Reveals Rising Rates, Urging Nepal to Embrace MICE Tourism for Economic Growth
The global tourism landscape is undergoing a significant transformation, shifting focus beyond mere visitor numbers to encompass the depth of traveler expenditure, their willingness to pay for unique experiences, and the ultimate economic impact on local economies. This evolving market dynamic is vividly captured in the "Hotel Monitor 2026" report by American Express Global Business Travel (Amex GBT), which offers a crucial snapshot of future trends in the hospitality sector. The report forecasts a generally moderate increase in hotel rates across major business destinations worldwide for 2026. However, this trend is far from uniform, with considerable variations observed across different cities and hotel categories. While some markets are poised for robust price growth, others might experience stable or even declining hotel rates. Notably, the demand for high-end hotels is projected to remain particularly strong, indicating a growing preference among travelers for premium experiences and services. This suggests a bifurcation in the market, where luxury and specialized offerings command higher value. A compelling illustration of these trends can be found in Bengaluru, India. Rapidly emerging as a pivotal global hub for technology and artificial intelligence, Bengaluru is projected to see a substantial 6.4% increase in hotel rates by 2026. This growth is mirrored in other major Indian cities, with Delhi anticipating a 6.8% rise, Hyderabad 5.7%, and Mumbai 5.3%. These figures underscore the profound influence of the burgeoning technology, business, and investment sectors on the accommodation market across South Asia. The report highlights Bengaluru's impressive tech ecosystem, home to over a million tech professionals and 28 unicorn companies, which significantly drives business travel and, consequently, hotel demand. Indeed, the first quarter of 2025 already saw Bengaluru demonstrating remarkable improvements in both hotel occupancy and average room rates within India. Beyond India, the Amex GBT report projects diverse rate changes globally. Cities like Toronto (5.8%), Buenos Aires (5.6%), Madrid (4.8%), Cape Town (4.7%), London (4.2%), and New York (4%) are expected to experience notable increases. Conversely, some markets are predicted to see more modest growth or even declines, such as Santiago (0.9%), Beijing (1.5%), and Sydney (1.5%), with certain Asian markets even anticipating a decrease in hotel rates. These variations reflect localized economic conditions, supply-demand dynamics, and specific market drivers. The report's forecasts are meticulously crafted using a combination of Amex GBT's proprietary data, inflation and economic growth projections from the International Monetary Fund (IMF), and sophisticated time-series models for price forecasting, ensuring a robust analytical foundation. While the "Hotel Monitor 2026" report does not directly address Nepal or offer specific forecasts for Kathmandu's hotel market, it delivers clear, implicit messages for the Nepali tourism sector. The global trends unequivocally indicate that hotel businesses thrive and can sustain or increase their value in locations characterized by robust economic activity, significant business travel, a focus on unique experiences, and a demand from high-spending travelers. This insight is particularly pertinent for Nepal, as the Nepal Tourism Board has recently prioritized high-value tourism in its new strategic framework. The immediate challenge for Nepal lies in effectively translating this strategy into tangible actions and outcomes. The Amex GBT report powerfully underscores the critical importance of business travel. Bengaluru's success story, driven by its thriving technology and industrial sectors, serves as a potent example of how commercial activities can significantly bolster hotel demand. For Nepal, this presents a compelling opportunity. By positioning cities like Kathmandu and Pokhara not merely as leisure destinations but also as prime venues for conferences, international meetings, corporate events, investment summits, technical forums, and institutional programs, the country can extend hotel industry demand beyond its traditional seasonal peaks. This strategic shift involves embracing "MICE" tourism – an acronym for Meetings, Incentives, Conferences, and Exhibitions. MICE tourists differ significantly from typical leisure travelers. They often have longer stays, require higher-quality accommodation, and incur substantially greater expenses on transportation, services, and event-related activities. Consequently, their economic contribution per visit is considerably higher. Therefore, to truly elevate the value of its tourism sector, Nepal must look beyond its iconic Himalayan landscapes. It needs to actively cultivate and capture the market for knowledge-based events, business engagements, and international conferences. By diversifying its tourism offerings to include a strong MICE component, Nepal can attract a more lucrative segment of travelers, stabilize demand for its hospitality sector, and foster sustainable economic growth. This strategic pivot is essential for Nepal to unlock its full potential in the evolving global tourism market.
PM Balen Shah's Iconic Black Glasses Spark International Discussion at UNGA
Prime Minister Balen Shah's recent address at the United Nations General Assembly (UNGA) in New York not only drew attention to Nepal's stance on critical global issues but also inadvertently highlighted a unique and now internationally recognized aspect of his public persona: his signature black glasses. This distinctive accessory, which has become synonymous with Shah's image, has now transcended national borders, sparking discussions in prominent international media outlets. During his address on Friday, Prime Minister Shah maintained his characteristic look, donning the black glasses that have been a consistent feature of his public appearances since his rise to prominence. This choice did not go unnoticed by the global press, particularly by the esteemed American newspaper, The New York Times. The publication featured Shah's UNGA visit and his political identity, specifically drawing attention to his black glasses. The report noted how the 36-year-old Prime Minister has cultivated a unique identity through this simple yet powerful visual cue. This recognition by a major international newspaper underscores the growing global interest in Nepal's unconventional leader and the subtle nuances of his public image. The international fascination with Shah's eyewear is not an entirely new phenomenon. Earlier, Al Jazeera, another influential global news network, had also reported on the trend-setting impact of Shah's black glasses, noting their emergence as a fashion symbol among Nepali youth. This observation highlights the cultural resonance of Shah's style, demonstrating how his personal branding extends beyond political circles into broader societal trends and youth culture. From his tenure as the Mayor of Kathmandu, Balen Shah's black glasses have consistently captured public attention, becoming a recognizable part of his political narrative. What began as a local talking point has now evolved into an international discussion, reaching the prestigious platform of the United Nations General Assembly. This trajectory illustrates the power of consistent personal branding, especially for a leader who has risen to prominence through an unconventional path, often challenging traditional political norms and appealing directly to a younger demographic. In an era dominated by visual media and social platforms, a leader's personal style can play a significant role in shaping public perception and fostering a distinct identity. For Prime Minister Shah, his black glasses have become more than just an accessory; they are a visual metaphor for his modern, youthful, and perhaps even enigmatic approach to leadership. This deliberate or unconscious branding helps him stand out, conveying a sense of confidence and individuality that resonates with a significant segment of the population, particularly the youth who often seek out authentic and unconventional figures. The international media's focus on such a detail also reflects a broader interest in the personalities behind political roles. It suggests a curiosity about leaders who deviate from conventional appearances, offering a glimpse into their character and the cultural context they represent. For Nepal, this attention, even if focused on a seemingly minor detail, contributes to its visibility on the global stage. It presents a modern image of the nation, led by a young, charismatic figure whose unique style is recognized and discussed internationally. This kind of soft power, derived from cultural and personal influence, can subtly enhance a nation's global standing and appeal, attracting interest beyond traditional diplomatic channels. In conclusion, Prime Minister Balen Shah's black glasses have evolved from a local fashion statement to an internationally recognized symbol of his political identity. Their discussion in global media outlets like The New York Times and Al Jazeera underscores the impact of personal branding in contemporary politics and highlights how a distinctive visual element can contribute to a leader's unique narrative on the world stage, subtly influencing perceptions of both the individual and the nation they represent.
India Braces for Major Banking Disruption as Nationwide Strike Looms, Threatening Billions in Transactions
India is on the brink of a significant banking upheaval as a three-day nationwide strike, spearheaded by the United Forum of Bank Unions (UFBU), is set to cripple financial operations across the country from September 28 to 30. At the heart of the dispute is a long-standing demand from bank employees for a five-day work week, a move they argue would align India's banking sector with global standards and improve work-life balance. The financial ramifications of this industrial action are projected to be substantial. Estimates suggest that check payments alone, valued between INR 15,000 crore and INR 20,000 crore, could be stalled during the strike period. This figure underscores the immense volume of transactions processed through traditional banking channels and the potential for widespread disruption. The timing of the strike exacerbates its potential impact. Preceded by the fourth Saturday on September 26 and a Sunday on September 27, the strike effectively creates a five-day continuous disruption to traditional banking services. Recognizing the severity of this extended holiday-strike period, the Indian government is reportedly considering measures to keep essential public sector bank branches open even on Sunday, September 27, to mitigate some of the immediate pressure and ensure critical services remain accessible. India's banking system processes an enormous volume of transactions daily. Digital payment platforms, particularly the Unified Payments Interface (UPI), handle an astounding INR 88,000 crore to INR 1 lakh crore daily. While UPI, ATMs, mobile, and internet banking services are expected to remain operational, the strike will severely impact traditional banking channels. This includes critical operations such as check clearances, NEFT (National Electronic Funds Transfer), RTGS (Real-Time Gross Settlement), cash transactions, loan disbursements, government payments, and foreign exchange operations, all of which are vital for businesses and individuals alike. It is crucial to differentiate between halted transactions and outright losses. Many transactions merely face delays and will eventually be processed once the strike concludes. However, the true economic cost will manifest in the form of significant transaction backlogs, increased pressure on business cash flows, and disruptions to the broader payment cycle. This could potentially impact supply chains, delay salary payments, and hinder various economic activities, creating a ripple effect across sectors. The unions' primary demand for a five-day banking week reflects a broader push for improved working conditions and a better work-life balance for bank employees. Millions of bank employees are expected to participate, underscoring the widespread support for the strike. However, it's noteworthy that several large private sector banks have indicated they will not join the strike, ensuring some continuity of services for their customers and potentially absorbing some of the overflow from public sector banks. Adding another layer of criticality to the situation is the strike's overlap with September 30, a pivotal date for Indian banks' half-yearly account reconciliation. Any disruption on this day could introduce significant complexities and additional pressure on financial management and reporting, potentially affecting quarterly results, regulatory compliance, and the overall financial health assessment of these institutions. As India navigates this challenging period, the focus will be on how quickly the banking sector can recover from the backlog and whether the government and unions can reach a resolution to prevent future disruptions. The strike serves as a stark reminder of the intricate balance between employee demands and the imperative of uninterrupted financial services for a robust and stable economy.
PM Balen Shah Urges Global Climate Action at UNGA, Calls for Himalayan Climate Resilience Mechanism
Nepal’s Prime Minister Balen Shah has called for stronger international action on climate change, greater climate financing and enhanced cooperation among Himalayan countries, warning that climate-induced disasters are increasingly threatening development, livelihoods and human security. Addressing the 81st United Nations General Assembly (UNGA), Shah said the recent devastating floods in Nepal’s Himalayan region should be viewed not merely as a national disaster but as a warning to the international community about the accelerating impacts of climate change. He said Nepal, despite contributing less than 0.1 percent of global greenhouse gas emissions, is facing severe consequences from a changing climate, including shrinking glaciers, unstable mountain slopes, unpredictable river flows and increasingly destructive disasters. Referring to the floods along the Bhotekoshi and Trishuli river systems, Shah said the disaster caused widespread loss of lives, infrastructure and livelihoods. He highlighted the plight of families searching for missing relatives, communities affected by debris and floodwaters, and infrastructure including bridges, roads, schools and homes that were destroyed within minutes. According to the speech, at least 1,400 people were killed, and more than 6,000 remained missing, while preliminary estimates indicated that physical recovery alone could require resources equivalent to around 10 percent of Nepal’s GDP. Shah said Nepal would once again seek international solidarity and support for recovery and reconstruction, drawing a parallel with the assistance received following the 2015 Gorkha earthquake. He also expressed gratitude to India, China, other friendly countries, the United Nations system, humanitarian agencies, philanthropic organizations and people around the world for their support following the floods. Shah stressed that the impact of climate change extends beyond national boundaries. He said the floods affected areas on both sides of the Nepal-China border before flowing downstream toward India, demonstrating that climate-related disasters require cross-border cooperation. “Climate change does not recognize borders,” Shah said, emphasizing that glaciers and floods do not travel with visas or passports. He linked rising temperatures to the destabilization of sensitive Himalayan ecosystems, including melting permafrost, unstable mountain slopes, landslides, avalanches and glacial and riverine flooding. As a key proposal, Shah called for the establishment of a “Himalayan Climate Resilience Mechanism” led by Nepal, India and China. The proposed mechanism would facilitate the exchange of satellite data and technical expertise, monitoring of potentially dangerous glacial lakes, strengthening of joint early-warning systems and coordinated cross-border responses during disasters. Shah said the Himalayan region should become a platform for international cooperation rather than a boundary divided by fragmented information systems. He noted that the Hindu Kush Himalayan region is home to nearly two billion people and provides water, ecosystems, agriculture and livelihoods to populations far beyond Nepal’s borders. “The Himalayas are not merely the periphery of the Earth; they are a life-support system for the planet,” he said. Shah argued that climate justice should translate into concrete action rather than remain limited to international declarations. Referring to the principle of Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC) under the UN climate framework, he said countries with greater historical contributions to the climate problem and greater capacity to respond should do more. He called for greater grant-based international assistance for vulnerable developing countries, arguing that climate disasters should not force poorer countries to take on additional debt to rebuild infrastructure destroyed by climate-related events. Shah also criticized the current scale and accessibility of international climate financing, saying mechanisms such as the Loss and Damage Fund and the Global Environment Facility (GEF) remain insufficient. He called for climate finance systems that allow vulnerable countries to access assistance more quickly during emergencies. Shah outlined six key priorities for responding to climate-induced disasters:a. Reliefb. Rehabilitationc. Reconstructiond. Responsibilitye. Reparationf. Resilience He said the first three are essential immediately after disasters, while the latter three are necessary to prevent climate disasters from becoming a permanent cycle for vulnerable countries. Despite being a least developed country, Shah said Nepal has been making significant contributions to environmental protection and climate action. He highlighted the restoration of forest cover across nearly half of Nepal’s territory, expansion of hydropower to meet domestic clean-energy requirements and replace fossil-fuel-based energy in neighboring markets, and promotion of electric transportation. He also emphasized efforts to strengthen climate adaptation capacity at the local level and improve Nepal’s ability to respond to increasingly frequent and severe climate disasters. Beyond climate change, Shah used his UNGA address to call for reforms in the international system and a fairer global economic order. Referring to the UNDP’s 1994 Human Development Report and its concept of human security, he said security should be understood not only in terms of territory and military strength but also in terms of people's access to development and freedom from fear and deprivation. He pointed to challenges faced by ordinary people in accessing essential goods such as agricultural fertilizer, fuel and other supplies, contrasting these difficulties with the speed at which military equipment can move across borders. Shah argued that the global system has developed highly efficient supply chains for warfare while failing to ensure equally reliable access to essential goods and livelihoods. Shah reaffirmed Nepal’s commitment to multilateralism and said the United Nations should remain a platform where smaller and poorer countries can have their voices heard. He said climate justice involves not only financial transfers but also distributive justice, concerning who bears the costs of climate change, and procedural justice, concerning whose voices are included in decision-making. He particularly highlighted the interests of Himalayan communities, small island developing states, landlocked countries, least developed countries and future generations. He said Nepal was prepared to lead discussions on these issues through the “Sagarmatha to Sea” programme scheduled to take place at the United Nations. Shah also highlighted his government's domestic priorities, including creating decent employment, strengthening social security and ensuring equal opportunities for Nepalis to prosper within their own country. He said the recent floods should be viewed as an indication of what a future of increasingly extreme climate events could look like. He called for a shift from ad hoc disaster response toward a culture of preparedness, with greater investment in resilience, insurance, innovation, stronger infrastructure and institutions, and reduced dependence on fossil fuels. He also called for systems capable of providing early warnings and protecting lives before disasters strike. Concluding his address, Shah urged the international community to listen when warnings emerge from the “roof of the world,” and act before climate-related disasters become even more destructive. He ended his address with a message invoking Lord Pashupatinath and the teachings of Buddha, wishing for global peace and welfare.
Prime Minister Balen Shah Delivers Urgent Climate Warning and Plea for Global Justice at UN General Assembly
Addressing the 81st United Nations General Assembly, Prime Minister Balen Shah of Nepal delivered a poignant and urgent message, warning the global community of the escalating climate crisis and its devastating impact on vulnerable nations like Nepal. His speech, a powerful call for climate justice and collective responsibility, underscored the severe consequences of global warming, particularly in the fragile Himalayan region. Prime Minister Shah began by recounting the harrowing experience of the 'Himalayan Tsunami' – the catastrophic flash floods that ravaged Nepal's mountainous communities just weeks prior. These deluges, which swept away homes, bridges, roads, schools, and livelihoods in the Bhote Koshi and Trishuli river basins, served as a stark reminder of the unprecedented scale of destruction. He emphasized that this was not merely a local tragedy but a global warning, questioning whether the international community had truly heeded the alarms raised previously, including the UN Secretary-General's own caution from the base of Mount Everest three years ago. The Prime Minister highlighted Nepal's unique predicament: despite contributing less than 0.1% to global greenhouse gas emissions, the nation bears a disproportionate burden of the climate crisis. Rising temperatures are destabilizing the sensitive Himalayan ecosystem, leading to melting permafrost and an increased risk of avalanches, floods, and landslides. He stressed that climate change knows no borders, with the devastation extending across the Nepal-China frontier and downstream into India, affecting billions who rely on the Himalayan water systems. For Nepal, these climate-induced disasters are not just humanitarian crises but a profound 'Development Emergency,' threatening to erase years of progress towards sustainable development goals and forcing a poor nation to incur debt for damages it did not cause. While expressing gratitude for the immediate aid from neighbors like India and China, as well as other international partners, Prime Minister Shah called for a more robust and equitable global response. He reiterated the principle of 'Common But Differentiated Responsibilities and Respective Capabilities' (CBDR-RC), urging nations with greater historical contributions to the crisis and larger capacities to do more. To foster regional resilience, he proposed the establishment of a 'Himalayan Climate Resilience Mechanism' led by Nepal, India, and China. This mechanism would facilitate the exchange of satellite data and expertise, monitor vulnerable glacial lakes, strengthen joint early warning systems, and coordinate cross-border disaster relief efforts, transforming the Himalayas into a laboratory for international cooperation rather than a fragmented border. Prime Minister Shah also shed light on Nepal's proactive efforts in environmental conservation and clean energy development. Despite being a Least Developed Country, Nepal has restored nearly half of its forest cover, is rapidly developing hydropower to meet its clean energy needs and export, and is promoting electric transportation at a rate comparable to parts of Europe. However, he cautioned that Nepal cannot combat this global crisis alone. He criticized the inadequacy and bureaucratic hurdles of existing climate finance mechanisms, such as the Loss and Damage Fund and the Global Environment Facility, advocating for sufficient grant-based support rather than further debt. He eloquently argued that when a house is on fire, one doesn't ask the family to fill out fifty forms; immediate action is required, which should be the essence of climate justice. The speech further delved into broader issues of global economic injustice and the shortcomings of the current international system. Prime Minister Shah lamented the paradox where efficient supply chains exist for weapons and ammunition, ensuring their timely delivery across borders, yet farmers in Nepal struggle to access essential fertilizers or fuel due to broken global supply chains. He highlighted that this issue extends beyond Nepal, affecting other nations in the region that suffer from climate impacts they didn't cause and wars they didn't start. As the youngest head of government addressing the assembly, he passionately asserted that a world capable of delivering weapons anywhere within 72 hours has no excuse for denying a farmer the means for a dignified livelihood. He reaffirmed Nepal's faith in multilateralism and the United Nations as platforms where smaller, poorer nations can have their voices heard, advocating for a more just global economic order rooted in human security. Concluding his address, Prime Minister Shah emphasized the need for a paradigm shift from ad-hoc responses to a culture of preparedness and resilience. He urged investment in robust infrastructure, insurance, and innovation, stressing the importance of reducing reliance on fossil fuels and improving early warning systems to protect lives. He called for a reform of global systems that perpetually disempower the most vulnerable, ensuring that when the 'roof of the world' issues its next warning, the world is ready to listen and act decisively. Nepal, he stated, is prepared to lead this dialogue through initiatives like the 'Sagarmatha to Sea' program. **Local Market Update:** Separately, the Nepali stock market (NEPSE) will observe a holiday on Ashoj 5, Monday.
Monsoon Disruptions: Kantilokpath Blocked by Landslides, NEPSE to Observe Holiday on Ashoj 5
Nepal's transportation network is once again facing significant challenges due to the ongoing monsoon season, with the vital Kantilokpath road section experiencing severe disruptions. Heavy landslides, triggered by continuous rainfall, have completely halted vehicular movement in three critical locations along this route, specifically at Panchdhure, Payangdhur, and Tikabhairav within Bagmati Rural Municipality-3, Lalitpur. This blockage has effectively cut off connectivity from both directions, impacting daily commuters, local businesses, and the broader supply chain reliant on this artery. The Kantilokpath, a crucial link connecting the capital region to various parts of the country, particularly towards Makwanpur, plays a significant role in facilitating trade and movement of goods. While the section towards Makwanpur is reportedly clear, the complete obstruction in Lalitpur poses immediate logistical hurdles. Teams from the Department of Roads, in collaboration with local police, have been swiftly mobilized to the affected sites. Their primary objective is to clear the massive debris and restore traffic flow as quickly as possible, a task often complicated by persistent rainfall and the risk of further landslides. These efforts are critical to minimizing the economic fallout and inconvenience to the public. Such infrastructure disruptions are a recurring challenge during Nepal's monsoon season, often leading to increased transportation costs, delays in the delivery of essential goods, and a general slowdown in economic activity in affected regions. For investors, these events highlight the inherent risks associated with businesses heavily dependent on road networks for logistics and supply chains, particularly those operating in or serving remote areas. Companies involved in transportation, construction, and consumer goods often face operational challenges and potential revenue impacts during such periods. In a separate but equally important development for the financial markets, the Nepal Stock Exchange (NEPSE) has announced that it will remain closed on Ashoj 5, Monday. While the specific reason for this closure was not explicitly stated in conjunction with the road disruptions, such market holidays are typically declared by the government for various public observances or unforeseen circumstances. For investors, a market closure means that no trading activities will take place on this day. This can impact trading strategies, especially for those looking to execute time-sensitive transactions or react to immediate market news. Pending orders will remain unexecuted, and market sentiment will be put on hold until trading resumes on the next business day. The dual impact of infrastructure challenges and a market holiday underscores the dynamic environment in which businesses and investors operate in Nepal. While the road blockage presents a tangible operational challenge, the NEPSE closure offers a brief pause in trading. Investors are advised to stay informed about both the progress of road clearance efforts and any further announcements regarding market operations. Understanding the broader economic and logistical landscape, alongside market-specific news, is crucial for making informed investment decisions in Nepal's evolving market. The continuous monitoring of such events allows investors to anticipate potential impacts on various sectors and adjust their portfolios accordingly.
Heavy Monsoon Rains Disrupt Life and Economy in Butwal, NEPSE to Observe Holiday
Nepal is currently experiencing widespread disruption due to active monsoon winds, with continuous heavy rainfall since Thursday morning significantly impacting daily life in Butwal and various other regions across the country. The Department of Hydrology and Meteorology has issued a stern warning, urging citizens to exercise extreme caution and vigilance, as forecasts indicate the likelihood of heavy rainfall persisting for the next three days. This relentless downpour has already led to considerable obstructions on major highways and critical road networks, not only in Butwal but also in several other key areas nationwide, posing significant challenges for transportation and logistics. The situation is particularly precarious in the older sections of Butwal's road infrastructure and along the perilous hilly routes, where the risk of flash floods and devastating landslides has escalated dramatically. In response to these growing threats, local administrations have strongly advised against all non-essential travel, emphasizing the need for heightened awareness among residents. Meteorological experts further caution that the monsoon low-pressure line remains critically close to Nepal, suggesting that the intensity and volume of rainfall could increase even further in the coming days. This grim forecast necessitates immediate and proactive measures, especially for communities residing near riverbanks. The water levels in the Tinau River and other local streams are projected to rise significantly, prompting authorities to issue high-alert warnings to ensure the safety of those living in vulnerable areas. The Department of Roads has taken a proactive stance, instructing all relevant agencies to remain in a state of readiness to address potential landslides that could occur on highways. This directive underscores the critical importance of maintaining open communication lines and swift response mechanisms to mitigate the impact of natural calamities on national infrastructure. Furthermore, long-distance vehicle operators have been specifically requested to meticulously check prevailing weather conditions and assess road safety before embarking on any journeys, highlighting the collective responsibility in ensuring public safety. Local governmental bodies and security forces have also been put on high alert, receiving explicit instructions to prepare for immediate rescue and relief operations, demonstrating a coordinated effort to safeguard lives and property. Beyond the immediate humanitarian concerns, such prolonged weather disruptions carry significant economic implications for a developing nation like Nepal. The obstruction of major trade routes can severely impact supply chains, leading to potential shortages of essential goods and inflationary pressures. Sectors such as tourism, which heavily rely on accessible infrastructure and favorable weather, are likely to face considerable setbacks. Agricultural output, a cornerstone of Nepal's economy, could also suffer from waterlogging or crop damage, affecting livelihoods and national food security. Investors often monitor such macroeconomic indicators closely, as they can influence corporate earnings and overall market sentiment. In a separate but crucial update for the financial community, the Nepali stock market (NEPSE) is scheduled to remain closed on Ashoj 5, Monday. This closure, while not directly linked to the weather events, represents a significant operational halt for investors and traders. Such market holidays, often declared for public observances or administrative reasons, mean that no trading activities will occur, and market participants will need to adjust their strategies accordingly. While the specific reason for this particular closure was not detailed in the immediate announcement, NEPSE closures are typically well-communicated events that allow market participants to plan. Investors are advised to stay informed about any further announcements from NEPSE regarding market operations. The combination of widespread weather-induced disruptions and a market holiday underscores a period requiring careful observation and strategic planning for businesses and investors alike in Nepal.
40 MW Raghuganga Hydropower Project Connects to National Grid, Boosting Nepal's Energy Security
Nepal's journey towards energy self-sufficiency has received a significant boost with the successful connection of the 40-megawatt (MW) Raghuganga Hydropower Project to the national transmission grid. Developed by Raghuganga Hydropower Limited, a subsidiary of the Nepal Electricity Authority (NEA), this crucial project located in Myagdi district has commenced electricity generation from its two 20-MW units, seamlessly integrating into the national system as of Wednesday. The electricity generated from the Raghuganga project is now being transmitted through the vital Kaligandaki Corridor 220 kV transmission line, a key infrastructure backbone for evacuating power from various projects in the region. Following this successful integration, the project is set to declare its test production phase, as stipulated by the Power Purchase Agreement (PPA) between Raghuganga Hydropower Limited and the NEA. A successful 15-day test production period will pave the way for the commencement of commercial electricity generation, marking a new milestone in Nepal's energy sector. Dirghayu Kumar Shrestha, Executive Director of the Nepal Electricity Authority and Chairman of Raghuganga Hydropower Limited, highlighted the immense challenges overcome during the project's construction. He acknowledged the difficult and complex geographical conditions, the unprecedented disruptions caused by the COVID-19 pandemic, and recurring natural disasters like floods. Despite these formidable obstacles, Shrestha emphasized that the project was completed through persistent efforts and unwavering commitment. He further underscored the project's strategic importance, particularly its ability to operate at full capacity for four hours daily during the evening peak demand period. This capability is expected to significantly contribute to managing electricity demand during the dry season, a period when Nepal often faces power deficits and increased reliance on imports. The Raghuganga project is projected to generate an impressive 247.9 million units of electricity annually, with approximately 34% of this output expected during the critical dry months. The Raghuganga Hydropower Project represents a substantial investment in Nepal's energy future, with an estimated cost of NPR 9.17 billion, excluding interest incurred during the construction period. The financial architecture of the project involved significant investment from the Government of Nepal and the Nepal Electricity Authority, complemented by a concessional loan obtained under a Line of Credit from the EXIM Bank of India. This blend of domestic and international financing underscores the collaborative effort required for large-scale infrastructure development. The project's development journey was not without its complexities. The Engineering, Procurement, and Construction (EPC) contract for the civil structures and hydromechanical works was awarded to Jaiprakash Associates Limited, India, through an agreement signed on November 21, 2017, which became effective on May 24, 2018. Subsequently, the contract for electromechanical works was secured by Bharat Heavy Electrical Limited (BHEL), India, on October 15, 2019, with its implementation commencing on December 4, 2019. The overall construction supervision was meticulously handled by WAPCOS Limited, India, ensuring adherence to quality and safety standards. Interestingly, the Raghuganga Hydropower Project initially began under the direct supervision of the Nepal Electricity Authority with an original capacity of 32 MW. However, due to unsatisfactory performance by the initial contractor, the contract was terminated. This led to a strategic decision to enhance the project's capacity to 40 MW and develop it under a "company model" through an NEA subsidiary, a move aimed at improving efficiency and accountability. This revised approach, coupled with new contractual agreements, successfully propelled the project to its completion. The integration of the Raghuganga Hydropower Project into the national grid is a testament to Nepal's ongoing commitment to harness its vast hydropower potential. It not only adds crucial generation capacity but also enhances the reliability and stability of the national power system. As Nepal continues to strive for energy independence and sustainable development, projects like Raghuganga play a pivotal role in reducing the country's carbon footprint and fostering economic growth by providing a stable and clean energy supply to industries and households alike. This achievement marks a significant step forward in Nepal's ambitious goal of becoming a net exporter of clean energy in the region.
NEPSE to Remain Closed Today, Govt Declares Public Holiday on The Occasion of Indra Jatra
The Government of Nepal has declared a public holiday for today, Friday, 9th Ashwin, to celebrate the 'Indra Jatra' festival of the Newar community. Nepal Stock Exchange Limited (NEPSE) will remain closed in observance of Indra Jatra, with regular trading set to resume from 11:00 AM on 12th Ashwin, 2083. Indra Jatra, also known as Yenya, is the largest religious street festival in Kathmandu. It features two main events: Indra Jatra and Kumari Jatra, celebrated with masked dances of deities and demons, along with the display of sacred images and tableaus honoring Indra, the king of heaven.
Nepal Rastra Bank Cuts Minimum Share Holding Period to 45 Days, Keeps Countercyclical Buffer at Zero
Nepal Rastra Bank (NRB) has introduced significant changes to the investment and capital-related provisions applicable to banks and financial institutions, reducing the minimum holding period for investments in shares and debentures from six months to 45 days. The changes have been incorporated into the Unified Directive, 2082 issued for Class ‘A’, ‘B’ and ‘C’ licensed banks and financial institutions. The NRB’s Banks and Financial Institutions Regulation Department issued the circular under the authority granted by Section 79 of the Nepal Rastra Bank Act, 2058. Under the revised provision, banks and financial institutions investing in the shares and debentures of organized institutions that have issued shares to the general public and are listed on the securities exchange will now be required to hold such investments for a minimum of 45 days. Previously, banks and financial institutions were required to hold such investments for at least six months. The revised provision provides greater flexibility for banks to manage their securities portfolios and respond to market conditions. However, the NRB has retained the restriction against making short-term investments in shares and debentures of organized institutions through any arrangement intended to circumvent the prescribed holding period. The change is expected to provide institutional investors with greater flexibility in portfolio management while maintaining safeguards against excessive speculative trading. The NRB has also maintained the countercyclical capital buffer at zero percent for commercial banks for the fiscal year 2083/84. With the buffer maintained at zero, commercial banks will not face an additional capital requirement under this provision. The arrangement allows banks to utilize their existing capital resources for lending and investment in productive sectors, particularly at a time when credit demand remains relatively subdued. Alongside the shorter holding period, the central bank has strengthened the risk-management framework governing banks’ investments in securities. Banks and financial institutions investing in government securities, NRB bonds, shares, debentures and other financial instruments must formulate a clear investment policy and procedure aimed at minimizing speculative risk. The policy must be approved by the institution’s board of directors before implementation. The policy is required to clearly outline the objectives and strategies of investment, scope of investment, prohibited investments, holding periods, and procedures for managing conflicts of interest. It must also specify the basis for classifying investments between the banking book and trading book, along with appropriate risk-management measures, including stop-loss provisions. The revised directive has also introduced stronger monitoring requirements for investment portfolios. Banks are required to implement systems for daily mark-to-market valuation, stress testing, and internal risk rating to assess and manage risks arising from investment activities. The measures are intended to ensure that banks continuously monitor changes in the market value and risk profile of their investment portfolios rather than relying solely on periodic assessments. To improve transparency in investment reporting, the NRB has introduced separate monthly reporting formats for investments classified under the banking book and trading book. Banks and financial institutions must submit their approved investment policies, procedures and investment-related details to the NRB’s Supervision Department in the prescribed formats. The revised framework therefore combines a shorter minimum holding period with tighter governance, disclosure and risk-management requirements. The reduction of the minimum holding period from six months to 45 days gives banks greater flexibility to manage their securities investments according to market conditions. It may also allow financial institutions to realize gains relatively sooner and diversify income sources through securities investments when demand for loans is weak. At the same time, the NRB has retained safeguards intended to prevent excessive speculation and ensure that securities investments remain within an institutionally approved risk-management framework. With the countercyclical buffer remaining at zero percent and the minimum holding period reduced to 45 days, the latest amendments provide banks with greater flexibility in capital deployment and securities portfolio management while placing continued emphasis on board-level oversight and risk controls.
Nepal's Trade Deficit Widens: A Deep Dive into Bilateral Trade Imbalances with India, China, and Key Partners
Nepal's foreign trade landscape continues to present a complex picture, with a significant widening of its trade deficit despite notable growth in both imports and exports. Data for the first two months of the current fiscal year 2083/84 (up to Bhadra end) reveals a deepening structural imbalance, particularly with its primary trading partners. During this period, Nepal imported goods worth an staggering NPR 401.51 billion, while its exports remained limited to NPR 76.58 billion. This disparity resulted in a substantial trade deficit of NPR 324.93 billion. The total foreign trade volume reached NPR 478.10 billion, marking a 35.64% increase compared to the same period last fiscal year. While exports saw an impressive 61.86% growth and imports rose by 31.58%, the sheer volume of imports, which forms a much larger base, meant that the deficit expanded rather than contracted. This indicates that for every rupee Nepal exports, it imports approximately NPR 5.24, highlighting a severe dependency on foreign goods. A closer examination of country-specific trade figures further illuminates the extent of this imbalance. India remains Nepal's largest trading partner, both as a source of imports and a destination for exports. In the first two months, Nepal imported goods worth NPR 221 billion from India, while exports to its southern neighbor stood at NPR 65.44 billion. This resulted in a colossal trade deficit of approximately NPR 155.56 billion with India alone, meaning imports from India were more than three-and-a-half times the exports. Key imports from India include petroleum products, industrial raw materials, machinery, vehicles, and daily consumables. Conversely, Nepal's exports to India are largely dominated by vegetable oil products, yarn, tea, coffee, spices, and jute products, with vegetable oil products forming a significant portion of total exports. The trade relationship with China, Nepal's second-largest trading partner, presents an even more skewed picture. Imports from China reached NPR 76.40 billion, but exports to China were a mere NPR 293.3 million (NPR 0.2933 billion). This translates to a staggering trade deficit of approximately NPR 76.11 billion with China, where Nepal imports over 260 times the value of goods it exports. Major imports from China include ready-made garments, electrical and electronic goods, industrial machinery, iron and steel products, plastic items, textiles, fruits, and food items. Recent disruptions at key border points like Rasuwaagadhi and Tatopani have also influenced trade flows, with some trade diverting to alternative routes such as the Korala border in Mustang, which saw imports worth around NPR 8.33 billion during this period. Beyond its immediate neighbors, Nepal's trade dynamics with other countries also contribute to the overall deficit. Argentina emerged as a significant import source, with goods worth approximately NPR 28.20 billion entering Nepal, primarily consisting of vegetable oils and raw materials for the food industry. In contrast, trade with the United States shows a relatively more balanced, albeit still deficit, scenario. Nepal imported NPR 6.57 billion worth of goods from the US and exported NPR 4.15 billion, resulting in a much smaller deficit compared to India or China. Nepali carpets and ready-made garments are prominent exports to the US market. Similarly, while Gulf countries like Saudi Arabia are significant import sources (e.g., NPR 9.84 billion from Saudi Arabia), Nepal's exports to these markets remain comparatively weak. This persistent and widening trade deficit poses significant challenges to Nepal's economic stability. It puts pressure on foreign exchange reserves, impacts the balance of payments, and can hinder the growth of domestic industries. The structural issues contributing to this imbalance include a limited diversified export base, heavy reliance on imported raw materials and intermediate goods for nascent industries, and insufficient domestic production capacity to meet local demand. While the growth in exports is a positive sign, its impact is dwarfed by the ever-increasing volume of imports. Addressing this requires strategic interventions, including promoting export diversification, fostering import substitution industries, improving trade logistics, and enhancing the competitiveness of Nepali products in international markets to achieve a more sustainable and balanced trade relationship.
Former President Bidya Devi Bhandari Assumes Senior Leadership Role in CPN (UML) Amidst Key Party Decisions
Kathmandu, Nepal – In a significant political development, the Communist Party of Nepal (Unified Marxist-Leninist) (CPN-UML) has officially appointed former President Bidya Devi Bhandari as a senior leader of the party. This decision, which marks her return to active party politics following her tenure as head of state, was formally approved by the party's Central Committee meeting held in Lalitpur, following a proposal from the party secretariat on Thursday at its central office in Chyasal. Secretary Padma Aryal elaborated on the rationale behind this pivotal decision, stating that it was deemed inappropriate to keep such an esteemed personality without a formal responsibility after she had been granted party membership. Bhandari, who served two terms as Nepal's President from 2015 to 2023, had initially applied for party membership even before the CPN-UML's 11th general convention. At that time, the party had deliberated on the appropriateness of a former head of state re-entering open partisan politics, considering the dignified nature of the presidential office. However, Bhandari asserted her right as a citizen to express her political affiliation and desire to be a party member. Recognizing this, the CPN-UML eventually granted her membership. Secretary Aryal emphasized that it was a natural progression to assign a significant role to such a respected figure once her membership was confirmed. "It would not have been appropriate to keep her merely as a pure party member," Aryal stated. "Therefore, when considering what responsibility would be suitable, taking into account her personality, her capacity, her guardianship, the party has now decided to give her a place and honor in this party as a respected senior leader." This move underscores the party's recognition of her extensive experience and influence within the political landscape. The appointment of former President Bhandari as a senior leader is expected to bring a wealth of experience and a unifying presence to the CPN-UML. Her long-standing political career, which began in student politics and saw her rise through the ranks to become the nation's first female president, positions her as a formidable figure. Her return to active party leadership could potentially influence the party's strategic direction, internal cohesion, and public image, especially in the lead-up to future elections. Investors often monitor political stability and the composition of leadership within major parties, as these factors can indirectly impact policy-making, economic reforms, and overall market sentiment. A strong and unified political front can contribute to a more predictable policy environment, which is generally favored by investors. In related party developments, Secretary Aryal also confirmed that decisions were made to approve the names of leaders for central committee and standing committee members, which will subsequently be forwarded to the secretariat. However, she noted that the process of forming the politburo could not proceed due to time constraints. These internal organizational decisions are crucial for the party's operational efficiency and its ability to effectively engage in national politics. Separately, and of direct relevance to the financial markets, the Nepal Stock Exchange (NEPSE) has announced that trading will be halted on Ashoj 5, Monday. This closure is typically observed for public holidays or significant national events, and investors should take note of this non-trading day for their planning. While the primary news revolves around political appointments, such market announcements are vital for all participants in the Nepalese stock market.
CPN-UML Central Committee Rejects Proposal for Chairman Oli's Leadership Transition
In a significant development within Nepal's political landscape, the Central Committee meeting of the Communist Party of Nepal (Unified Marxist-Leninist), CPN-UML, has rejected a proposal suggesting that Chairman KP Sharma Oli should respectfully step down from his leadership role. This decision was announced by Deputy General Secretary Yogesh Bhattarai during a media interaction in Lalitpur on Thursday, shedding light on the internal dynamics of one of the nation's most influential political parties. Bhattarai clarified that the issue of leadership restructuring is a complex and multifaceted matter that cannot be resolved in a single meeting or discussion. He indicated that these crucial discussions would continue in subsequent party meetings, underscoring the ongoing internal deliberations regarding the party's future direction and leadership structure. This suggests a period of continued internal dialogue and potential shifts within the party's hierarchy, which is a common occurrence in large political organizations navigating succession and strategic planning. The immediate and primary focus for the CPN-UML, as outlined by Deputy General Secretary Bhattarai, is now squarely on the preparations for the upcoming local level elections. He emphasized the party's commitment to unity and cohesion as it gears up for this critical electoral challenge. Local elections are pivotal in Nepal's federal structure, as they determine the leadership and governance at the grassroots level, directly impacting local development, service delivery, and resource allocation. The outcomes of these elections often serve as a barometer for national political sentiment and can influence the broader political narrative. Furthermore, Bhattarai highlighted the party's intention to empower lower-level committees in the process of candidate selection for the local elections. This decentralization of authority aims to ensure that candidates are chosen based on the sentiments and aspirations of party workers and the general public, fostering a more democratic and representative selection process. This approach is crucial for building strong local leadership and ensuring that the party's agenda resonates with the needs of the communities it seeks to represent. The party also plans to present a manifesto that aligns with public expectations and addresses the pressing issues faced by citizens. For investors and the broader financial community, political stability and the direction of major political parties are often key indicators of the overall economic climate. While this news directly concerns internal party politics, the decisions made by parties like the CPN-UML can have indirect but significant implications for policy-making, governance, and investor confidence. A unified and stable political environment is generally conducive to economic growth and predictable policy frameworks, which are highly valued by investors. Conversely, prolonged internal strife or political uncertainty can sometimes lead to policy paralysis or shifts that might impact various sectors of the economy. The CPN-UML's renewed focus on local elections, coupled with its emphasis on party unity and a public-centric approach to candidate selection, signals its strategic intent to strengthen its base and influence at all levels of governance. As Nepal continues its journey of economic development, the role of major political parties in shaping national policies and ensuring effective governance remains paramount. The outcome of these internal discussions and the party's performance in the upcoming local elections will undoubtedly be closely watched by political analysts, citizens, and the investment community alike, as they offer insights into the future trajectory of Nepal's political and economic landscape.
Global IME Bank Marks Two Decades of Growth, Proposes 10% Dividend Amidst Strong Financial Performance
Global IME Bank Limited, one of Nepal's leading commercial banks, is celebrating a significant milestone, marking two decades of its journey in the Nepali financial sector. The bank is set to convene its 20th Annual General Meeting (AGM) on Ashoj 16, 2080 (October 3, 2023), where it will present its robust financial performance for the fiscal year 2079/80 and propose a 10% dividend to its shareholders. Over the past two decades, Global IME Bank has demonstrated remarkable growth, expanding its capital base, deposit portfolio, loan disbursements, customer outreach, service network, and digital banking capabilities. This consistent expansion has solidified its position as a dominant player in the highly competitive Nepali banking landscape, contributing significantly to the nation's financial inclusion and economic development. As of the end of the fiscal year 2079/80, the bank's total deposit collection reached an impressive NPR 700.44 billion, reflecting strong public trust and effective deposit mobilization strategies. Concurrently, its total loan investments stood at NPR 476.84 billion, underscoring its significant contribution to economic growth by financing various sectors, from small and medium enterprises to large corporate projects. The bank's paid-up capital has also grown substantially, reaching NPR 38.116 billion, positioning it among the largest capitalized banks in the country and enhancing its capacity for further expansion. The financial results for FY 2079/80 highlight a commendable performance, with the bank reporting a net profit of NPR 6.036 billion. This represents a significant year-on-year increase of 15.90%, showcasing the bank's operational efficiency, strategic prowess, and effective asset management. During the same period, the bank's deposits grew by 21.80%, while its loan portfolio expanded by 8.22%, indicating a healthy and balanced growth trajectory despite a challenging economic environment characterized by fluctuating interest rates and liquidity concerns. In recognition of its shareholders' continued support and to share the fruits of its success, the Board of Directors has proposed a total dividend of 10% for the current fiscal year. This proposed dividend comprises 6% in cash dividends and 4% in bonus shares. The distribution of this dividend is contingent upon approval from the upcoming Annual General Meeting. This move is expected to be well-received by investors, reflecting the bank's commitment to delivering consistent returns and enhancing shareholder value. Global IME Bank has a strong track record of rewarding its shareholders. Excluding the currently proposed dividend, the bank has historically distributed a total of NPR 236.12 per share in the form of cash and bonus shares. This includes NPR 79.20 per share in cash dividends and NPR 156.92 per share in bonus shares, demonstrating a long-term commitment to shareholder value creation. Upon the successful distribution of the proposed 4% bonus shares, the bank's paid-up capital is projected to further increase to approximately NPR 39.64 billion, enhancing its financial strength and capacity for future growth and regulatory compliance. Beyond financial metrics, Global IME Bank has also made significant strides in expanding its service network, ensuring accessibility and convenience for its growing customer base across Nepal. Currently, the bank operates an extensive network comprising 341 branches, 366 ATMs, 141 branchless banking service points, and 69 extension and revenue collection counters. Furthermore, to cater to the needs of the Nepali diaspora and facilitate international transactions, the bank maintains three representative offices abroad. With over 1,000 service centers nationwide, Global IME Bank is dedicated to providing comprehensive banking services to a diverse clientele, leveraging both physical presence and digital platforms. Looking ahead, Global IME Bank has outlined a strategic vision focused on sustained business expansion, accelerated digital transformation, robust risk management frameworks, and continuous improvement in loan quality. The bank's overarching goal is to create sustainable returns for its shareholders while maintaining a strong financial foundation. As it embarks on its third decade, the bank is committed to striking a balance between aggressive business growth and ensuring long-term profitability and stability, reinforcing its position as a pillar of Nepal's financial sector and a reliable partner for its stakeholders.
Gautam Adani Reclaims India's Richest Title, Surpassing Mukesh Ambani
In a significant shift within India's elite financial landscape, industrial magnate Gautam Adani has once again ascended to the pinnacle of wealth, reclaiming his position as the nation's richest individual. This development, highlighted by the M3M Hurun India Rich List 2026, sees the Adani family surpassing the long-standing dominance of Reliance Industries Chairman Mukesh Ambani and his family. The latest rankings, unveiled on September 23, underscore the dynamic nature of wealth creation and accumulation in one of the world's fastest-growing major economies. The Adani family's fortunes have seen a remarkable surge over the past year, with their total wealth escalating by an impressive 13% to reach a staggering INR 9,23,000 crore (approximately USD 110 billion). This substantial growth stands in contrast to the Ambani family, whose wealth experienced a 10% decline, settling at INR 8,63,000 crore (approximately USD 103 billion). This divergence in financial trajectories has propelled Gautam Adani back to the top spot, relegating Mukesh Ambani to the second position. The report attributes Adani's resurgence to strategic business expansions and robust performance across his diverse conglomerate, which spans infrastructure, energy, and commodities. The M3M Hurun India Rich List 2026 is a comprehensive compilation, featuring 1,810 individuals and families who possess a minimum wealth of INR 1,000 crore. Collectively, the wealth of these affluent individuals and families amounts to an astounding INR 1,87,50,000 crore, reflecting the immense economic power concentrated within India's wealthiest echelons. This year's list not only tracks the top contenders but also provides a broader perspective on the country's burgeoning prosperity. A notable trend observed in this year's report is the significant rise in the number of wealthy women. The count of women on the list has increased from 100 last year to 131 this year, signaling greater female participation and success in wealth creation. Leading this impressive cohort is Roshni Nadar Malhotra of HCL Technologies, who stands as India's richest woman with a formidable wealth of INR 2,79,000 crore. Her achievement highlights the growing influence of women in India's corporate and economic spheres. Beyond the top two, several other prominent figures have made significant strides. Lakshmi Niwas Mittal, Chairman of ArcelorMittal, and his family have demonstrated remarkable upward mobility, climbing eight positions to secure the third spot. Their wealth witnessed an extraordinary 93% increase, reaching INR 3,39,000 crore. This surge is largely attributed to protective policies concerning steel imports in Europe and a favorable rise in global steel prices, which have bolstered ArcelorMittal's profitability. Similarly, Anil Agarwal and his family from the Vedanta Group also entered the top 10, with their wealth soaring by 87% to INR 2,08,000 crore, placing them ninth. Samir Mehta and his family, representing Torrent Pharmaceuticals, also made their debut in the top 10, securing the tenth position with a 52% increase in wealth, totaling INR 1,89,000 crore. Perhaps one of the most intriguing additions to this year's list is the inclusion of Artificial Intelligence (AI) as a distinct sector for the first time. This reflects the profound impact of technological innovation on wealth generation. The AI sector alone accounts for 19 wealthy individuals on the list, with a combined wealth of INR 3,07,000 crore. A striking 15 of these 19 AI entrepreneurs are new entrants, collectively adding INR 1,82,000 crore in wealth. This segment includes promoters from cutting-edge companies such as Control S Datacenters, Yotta, Astera Labs, Parallel Web Systems, Sarvam AI, and Emergent AI, underscoring the rapid growth and investment potential within this transformative technology. The AI sector also showcases the emergence of a new generation of entrepreneurs. Tanay Kothari and Sahaj Garg, the 28-year-old founders of AI company Whisper Flow, are the youngest AI entrepreneurs to feature on the Hurun list, each estimated to possess approximately INR 4,200 crore. Their inclusion highlights the accelerating pace of innovation and the opportunities it presents for young, visionary leaders. India's overall economic expansion is further evidenced by the continuous growth in its dollar billionaire population. In the past year alone, 27 new dollar billionaires were added, bringing the total count to 391. This represents a significant increase from just 237 dollar billionaires five years ago, marking a rise of 154 individuals. The broader Hurun Rich List welcomed 128 new individuals and families this year, contributing to a total of 803 new names over the last five years. Importantly, approximately 70% of the individuals on the list, or 1,266 people, are self-made, emphasizing the strong entrepreneurial spirit and opportunities for organic wealth creation in India. From a sectoral perspective, industrial production continues to be the leading source of wealth, with 166 individuals from this sector making the list. The chemicals sector follows closely with 142 individuals, while the pharmaceutical sector accounts for 136 wealthy individuals. Geographically, Mumbai remains the undisputed hub for India's affluent, hosting 465 individuals from the Hurun list. New Delhi ranks second with 236 wealthy residents, followed by Bengaluru with 129. These cities continue to serve as the primary engines for wealth creation and major business operations across the nation. The M3M Hurun India Rich List 2026 paints a vivid picture of India's evolving economic landscape—a landscape characterized by robust growth, dynamic shifts in leadership, the emergence of new technology-driven wealth, and a burgeoning class of self-made billionaires. For investors, these trends signal a vibrant economy with diverse opportunities, reflecting India's increasing prominence on the global economic stage.
Nepal Intensifies Tourism Promotion in Japan at Global Expo, Eyeing Economic Boost
Nepal is making a strategic push to bolster its tourism sector by actively promoting its diverse offerings in the lucrative Japanese market. This concerted effort is currently underway at the prestigious Japan Tourism Expo, held at the Tokyo Big Sight International Exhibition Center in Tokyo. The Nepal Tourism Board (NTB) is spearheading this initiative, leading a delegation of nine prominent private tourism companies and hotels, all dedicated to showcasing Nepal's unique appeal to Japanese travel professionals and consumers. The four-day expo, which commenced on a Thursday with the theme 'The Changing Form of Travel,' is a collaborative endeavor by the Japan Travel and Tourism Association, the Japan Association of Travel Agents (JATA), and the Japan National Tourism Organization (JNTO). Marking its 12th edition, the event saw a video message from Japanese Prime Minister Sanae Takaichi during its inauguration, underscoring its significance on the global tourism calendar. This year's expo is a massive undertaking, featuring 1,420 companies and organizations from 74 countries, including Nepal, alongside 46 Japanese prefectures, occupying 1,553 booths. Organizers anticipate a substantial turnout of approximately 180,000 tourism professionals and tourists, with 597 stalls specifically allocated for international participants. Nepal views Japan as a critical market for its tourism industry, and its promotional strategy at the expo is comprehensive. The focus is on highlighting Nepal's iconic Himalayan destinations, world-renowned trekking routes, the sacred birthplace of Buddha – Lumbini, its rich cultural heritage, unparalleled biodiversity, and a wide array of other adventure and experiential tourism activities. Nepali businesses are engaging directly with Japanese travel agencies, tourism professionals, and potential tourists, providing detailed information about bespoke tourism packages and services tailored to the Japanese clientele. The expo's structure facilitates robust business interactions. The initial two days, September 24 and 25, were dedicated to pre-scheduled business-to-business (B2B) meetings, totaling an impressive 6,454 sessions. These meetings brought together 855 buyers and 1,19 sellers, fostering direct partnerships and collaborations. The subsequent days, September 26 and 27, are reserved for business-to-consumer (B2C) programs, directly targeting the general public and potential travelers. Pradip Gaire, a Senior Officer at the Nepal Tourism Board, confirmed that Nepali tourism entrepreneurs have been actively engaged in B2B meetings with Japanese travel agencies and businesses since the expo's opening day. These discussions revolve around tourism packages specifically designed for the Japanese market, trekking expeditions, and other tourism services, alongside sharing updates on Nepal's current tourism landscape. A crucial aspect of these interactions involves providing factual information to Japanese businesses regarding the situation following recent natural events, such as the Bhotekoshi floods. This includes reassuring them about the operational status of various tourist destinations and trekking routes, as well as the robust safety measures in place for visitors. “We are striving to build confidence in the market by providing factual information to Japanese tourism professionals about Nepal’s current tourism situation and confirming that tourist destinations are safe and operational,” Gaire stated. The Nepali delegation at the expo includes a diverse group of private sector players: Gochali Tour & Travels, Sumeg Tours & Travels, Himalayan Guides Nepal Treks & Expedition, Langtang Ri Trekking & Expedition, Ghale Treks & Expedition, Buddha Maya Gardens, Rupakot Resort, Chhayadevi Complex (Aloft Kathmandu Thamel), and Gorkha International Travels. Yuvraj Gurung, another Senior Officer at NTB, emphasized the expo's role as a vital international platform to further strengthen the long-standing tourism and people-to-people ties between Nepal and Japan. He underscored the importance of maintaining a continuous presence in the international tourism market, especially in the wake of natural disasters, to convey the clear message that Nepal's tourist destinations are fully operational and ready to warmly welcome foreign visitors. Throughout the expo, Nepal's stall is utilizing audio-visual presentations, brochures, and other promotional materials to inform Japanese and other international visitors about Nepal's diverse attractions, with a particular emphasis on its majestic Himalayas, adventurous trekking, rich cultural heritage, the spiritual significance of Lumbini, and its vibrant biodiversity. This year, the NTB's participation extends beyond mere governmental promotion, strategically leveraging the event to foster direct commercial relationships with the private sector in the Japanese market through B2B meetings and to reach potential tourists directly via B2C programs, solidifying Nepal's position as a premier global travel destination.
Nepal Rastra Bank Eases Investment Holding Period for BFIs, Sets Countercyclical Buffer to Zero
The Nepal Rastra Bank (NRB), the central bank of Nepal, has introduced significant amendments to its Integrated Directive 2082, bringing crucial changes to the operational framework for 'A', 'B', and 'C' class licensed banks and financial institutions (BFIs). These revisions, aimed at refining the regulatory landscape, primarily focus on the minimum holding period for investments in shares and debentures, alongside other critical risk management protocols. Under the newly revised directive, BFIs are now permitted to hold their investments in shares and debentures of publicly listed companies for a minimum period of just 45 days. This marks a substantial departure from the previous requirement, which mandated a minimum holding period of six months. This strategic reduction is expected to inject greater liquidity into the secondary market and offer BFIs enhanced flexibility in managing their investment portfolios. The amendment, issued by NRB's Bank and Financial Institution Regulation Department, leverages the authority granted under Section 79 of the Nepal Rastra Bank Act, 2058, underscoring the central bank's commitment to adapting regulations to evolving market dynamics while maintaining financial stability. The previous six-month holding period was often cited as a constraint on BFIs' ability to actively participate in the market, potentially limiting their returns and market responsiveness. By shortening this duration, NRB aims to encourage more dynamic participation from institutional investors, which could lead to increased trading volumes and improved price discovery mechanisms in the Nepalese stock market. However, it is crucial to note that while the holding period has been relaxed, the directive explicitly retains the existing stringent prohibition against any form of short-term speculative investment in shares and debentures through arrangements designed to circumvent the spirit of long-term investment. This ensures that the core objective of promoting stability and discouraging excessive speculation remains intact. In another significant development, the NRB has set the Countercyclical Buffer (CCyB) for commercial banks at zero percent for the fiscal year 2083/84. The Countercyclical Buffer is a macro-prudential tool designed to ensure that banks build up capital buffers during periods of excessive credit growth, which can then be drawn down during periods of stress to absorb losses and maintain the flow of credit to the real economy. Setting it to zero percent suggests that the central bank currently perceives the financial system as not facing excessive credit growth or systemic risks that would necessitate additional capital buffers. This move could potentially free up capital for commercial banks, encouraging lending and supporting economic activity. Furthermore, the revised directive emphasizes the imperative for BFIs to establish and implement robust investment policies and procedures. These policies, which must be explicitly approved by their respective boards of directors, are designed to mitigate speculative risks associated with investments in various instruments, including government securities, NRB bonds, shares, and debentures. The central bank mandates that these investment policies must clearly articulate the objectives and strategies of investment, provide a clear classification of investments into banking and trading books, specify holding periods, and outline explicit methodologies for managing potential conflicts of interest. To bolster risk management capabilities, the NRB has made several systems mandatory for investment transactions. These include daily mark-to-market valuations, which ensure that investments are valued at their current market price, providing a real-time assessment of portfolio performance and risk exposure. Additionally, stress testing is now compulsory, requiring BFIs to evaluate the resilience of their investment portfolios under various adverse market scenarios. Internal risk rating systems are also mandated to ensure a comprehensive assessment of the credit and market risks associated with individual investments. Adherence to these stringent risk management practices is critical for safeguarding the financial health of BFIs and, by extension, the stability of the entire financial system. All approved policies, procedures, and detailed investment reports must be submitted to the NRB's Supervision Department in the prescribed formats, ensuring transparency and regulatory oversight. Finally, in a separate but relevant announcement for market participants, the Nepali stock market will observe a trading holiday on Ashoj 5, Monday. Investors and traders should take note of this closure when planning their market activities. The comprehensive amendments introduced by the Nepal Rastra Bank reflect a proactive approach to financial sector regulation. By balancing the need for market liquidity and flexibility with robust risk management and stability, these directives are poised to shape the investment landscape for BFIs, potentially fostering a more dynamic yet secure environment for the Nepalese capital market.
SEBON Publishes Concept Paper on Advance Disclosure of Share Sales by Promoters
The Securities Board of Nepal (SEBON) has published a concept paper on the requirement for substantial shareholders of companies listed on the Nepal Stock Exchange (NEPSE) to provide advance notice before selling a significant portion of their shares. The concept paper, titled “Concept Paper on the Requirement for Substantial Shareholders of Companies Listed on Nepal Stock Exchange Limited to Provide Advance Notice to the Securities Market Before Selling Shares, Its Rationale, International Practices and Proposed Regulatory Framework, 2083,” was made public on Ashwin 7, 2083. SEBON said it had issued a directive on Bhadra 9, 2083, requiring any substantial shareholder of a NEPSE-listed company intending to sell 5% or more of their shareholding to notify the concerned company at least 15 days before the proposed sale. The company is required to arrange for the information to be publicly disclosed through NEPSE. SEBON issued the directive under the authority granted by Section 84(1) of the Securities Act, 2063, with the objective of strengthening market surveillance, protecting investors and promoting orderly securities trading. According to SEBON, the advance disclosure mechanism is intended to ensure equal access to information among investors and enable them to make informed investment decisions. The regulator said the arrangement would also help the market anticipate potential supply, identify unusual price movements and strengthen surveillance of possible securities-related offences and market abuse. The newly published concept paper aims to provide greater clarity to stakeholders regarding the rationale behind the advance-notice requirement, international practices and the proposed regulatory framework. SEBON said the advance disclosure provision is expected to increase market transparency and strengthen regulatory oversight through more effective risk-based market surveillance. The regulator also expects the measure to help manage unusual price fluctuations and selling pressure that could arise from large-volume share sales, thereby contributing to the protection of small investors. SEBON said the framework would ultimately support fairness, market integrity, accountability and investor confidence in Nepal's securities market. https://sebon.gov.np/uploads/2026/09/23/XZ2PIQSc3ex13WQTrjDDYja6VCu03AhRuMyCMiLQ.pdf
SEBON Opens Door for Intraday Trading; Buy First, Sell Later in Same Day
The Securities Board of Nepal (SEBON) has proposed introducing intraday trading in Nepal’s capital market in phases. The regulator has published the “Concept Paper on Implementation of Intraday Trading of Securities in Nepal, 2083” and invited suggestions from stakeholders on the proposed framework. According to SEBON, the initiative aims to increase market liquidity, improve price discovery and support the development of modern capital market infrastructure. Rather than introducing intraday trading across the market at once, the board has proposed starting with a limited number of securities that have regular trading activity, sufficient liquidity and relatively lower risks of market abuse. In the initial phase, SEBON has proposed a “Buy First, Sell Later” model, where investors would first purchase shares and sell them on the same trading day. The board plans to consider the “Sell First, Buy Later” model only after the necessary systems for securities lending and borrowing, as well as covered short selling, are sufficiently developed. The concept paper also proposes setting criteria for eligible securities and investors, along with requirements for brokers, risk disclosure, margin and risk management, market monitoring and technology systems. SEBON has proposed testing and pilot programs before gradually expanding the system based on the results and risk assessments. The board said investor protection, risk based regulation, real time trading and monitoring, and transparent market operations will be key priorities. The concept paper was prepared following discussions and studies involving representatives from SEBON, Nepal Stock Exchange (NEPSE), CDS and Clearing Limited, and the Stock Brokers Association of Nepal. The initiative is linked to the government’s Capital Market Strengthening and Revival Action Plan, 2083, issued by the Ministry of Finance on September 14, 2026, as well as SEBON’s policy for the current fiscal year. SEBON has requested stakeholders to submit their views and suggestions on the proposed framework. Your browser does not support pdfs, click here to download the file.
MetLife Nepal Partners with KIST Hospital for Cashless Treatment
MetLife Nepal has partnered with KIST Medical College & Teaching Hospital to provide cashless hospitalization services to eligible customers covered under its Employee Benefits insurance plans. With the arrangement, eligible employees and their covered family members can receive treatment at KIST without paying the hospital bill upfront, subject to their insurance policy’s coverage, eligibility and terms. MetLife will settle eligible medical expenses with the hospital through the cashless claims process. The service is intended to reduce the financial burden at the time of hospital admission and make the insurance claim process simpler for customers. Customers seeking cashless treatment can contact MetLife Nepal at 01-5970166 or KIST’s designated support team for information on the admission procedure and required documents.
eSewa and Citizens Bank Launch ‘Swabalamban Karja’ for Persons with Disabilities
eSewa and Citizens Bank International Limited have launched ‘Swabalamban Karja’, a digital loan facility aimed at making formal credit more accessible to Persons with Disabilities. The facility allows eligible applicants to apply for loans directly through the eSewa app, reducing the need for lengthy paperwork and physical visits. Loans ranging from Rs. 10,000 to Rs. 200,000 are available at an annual interest rate of 9.99%, with a 0.75% processing fee. Applicants must have a KYC-verified eSewa account, a disability identity card issued by the Government of Nepal, at least six months of eSewa usage history, and a regular income from employment or business. Loan approval will be subject to the bank’s assessment and applicable terms. The facility was launched at an event in Kathmandu attended by representatives from eSewa, Citizens Bank, the National Federation of the Disabled Nepal, development partners, Persons with Disabilities and the media.
Infomerics Nepal Elevates Credit Rating for Lalitpur Bishal Bazar Multiplex (Labim Mall), Signifying Enhanced Financial Stability
Infomerics Credit Rating Nepal Limited (Infomerics Nepal) has announced a significant upgrade in the credit ratings assigned to Lalitpur Bishal Bazar Multiplex Company Limited, the entity behind the prominent Labim Mall. This positive revision reflects an improved financial outlook and strengthened creditworthiness for the company, a development that will undoubtedly be welcomed by its stakeholders and the broader market. The rating for the company's long-term bank facilities, amounting to Rs 533.54 million, has been elevated to IRN BBB- from the previous IRN BB. Concurrently, the rating for its short-term bank facilities, totaling Rs 5 million, has seen an upgrade to IRN A3 from IRN A4. These upgrades signify a reduced risk profile for the company, indicating a stronger capacity to meet its financial obligations in both the long and short term. For investors and financial institutions, a credit rating upgrade is a crucial indicator of a company's health. An IRN BBB- rating, for instance, suggests a moderate degree of safety regarding timely servicing of financial obligations, with moderate credit risk. This is a step up from IRN BB, which indicates a moderate risk of default. Similarly, an upgrade from IRN A4 to IRN A3 for short-term facilities implies a strengthening ability to meet immediate financial commitments. Such improvements often translate into better borrowing terms, lower interest rates, and enhanced access to capital markets, which are vital for future growth and expansion. Lalitpur Bishal Bazar Multiplex Company Limited has a notable history, having been established in December 2001 and subsequently converted into a private limited company in May 2012. Its flagship project, Labim Mall, located in Pulchowk, Lalitpur, commenced commercial operations in April 2016. Labim Mall has since established itself as a premier commercial complex, offering a diverse range of retail, dining, and entertainment options, making it a popular destination for residents and visitors alike in the Kathmandu Valley. The company operates on a strategic foundation, underpinned by a 25-year land lease agreement with Patan Multiple Campus, which commenced in March 2016. This long-term lease provides stability and a predictable operational environment for the mall. Furthermore, the company has undertaken significant corporate actions, including its transition from a private to a public limited company and the acquisition of Lalit Cinemas Private Limited. These strategic moves underscore the company's ambition for growth and market consolidation, positioning it for broader public participation and expanded operational scope. The upgraded credit ratings are a testament to Lalitpur Bishal Bazar Multiplex's sound financial management, robust operational performance, and strategic initiatives. This positive assessment by Infomerics Nepal is expected to bolster investor confidence, potentially attracting new capital and facilitating more favorable financing arrangements. For the Nepali financial market, this news highlights the ongoing efforts of companies to strengthen their financial standing and transparency, contributing to a more mature and reliable investment landscape.
NEPSE Implements Share Price Adjustments for Kalinchowk Darshan, Machhapuchchhre Bank, and Global IME Balanced Fund-1
The Nepal Stock Exchange (NEPSE) has officially implemented share price adjustments for two prominent companies, Kalinchowk Darshan Limited and Machhapuchchhre Bank Limited, alongside the Global IME Balanced Fund-1. This crucial adjustment, a standard procedure in the stock market, was carried out to reflect the distribution of dividends and bonus shares to eligible shareholders following their respective book closure dates. The move ensures fair trading practices and accurately reflects the intrinsic value of these securities post-corporate action. For Kalinchowk Darshan Limited, NEPSE adjusted its share price to account for an 8.50 percent bonus share issuance. Bonus shares are essentially new shares issued by a company to its existing shareholders, free of charge, out of its accumulated profits or reserves. While the number of shares held by an investor increases, the per-share price is proportionally reduced, ensuring that the total market value of an investor's holding remains theoretically unchanged immediately after the adjustment, prior to any market movements. Following this adjustment, Kalinchowk Darshan's share price has been set at NPR 580.46. Its last traded price on Thursday was NPR 629.80 per share. Similarly, Machhapuchchhre Bank Limited saw its share price adjusted for a 3 percent bonus share distribution. This action, much like Kalinchowk Darshan, aims to reflect the dilution of the share price due to the increased number of outstanding shares. The adjusted price for Machhapuchchhre Bank now stands at NPR 250.97, down from its last traded price of NPR 258.50 per share on Thursday. These adjustments are vital for maintaining market integrity, as they prevent arbitrage opportunities and ensure that new buyers do not pay a price that includes the value of dividends or bonus shares they are not entitled to. In the case of Global IME Balanced Fund-1, the adjustment was made to reflect a 12 percent cash dividend payout. Unlike bonus shares, a cash dividend is a direct payment of money from the company's earnings to its shareholders. When a mutual fund distributes a cash dividend, its Net Asset Value (NAV) per unit decreases by the amount of the dividend. Consequently, NEPSE adjusted the fund's unit price to NPR 10.50, from its previous closing price of NPR 11.70 per unit on Thursday. This adjustment ensures that the market price accurately reflects the fund's assets after the dividend distribution. The book closure date is a critical cut-off point determined by companies to identify shareholders eligible for dividends, bonus shares, or other corporate benefits. Once the book is closed, NEPSE adjusts the share price on the trading day following the book closure. This mechanism is crucial for the smooth functioning of the secondary market, allowing trading to continue without confusion regarding dividend entitlements. Investors should note that these adjustments are purely technical and do not represent a loss or gain in their investment value at the moment of adjustment. The market price simply reflects the distribution of value. For instance, an investor holding bonus shares will have more shares, but each share will be worth less, maintaining the total value. Similarly, for cash dividends, the investor receives cash, and the share/unit price drops by a corresponding amount. Trading for Kalinchowk Darshan, Machhapuchchhre Bank, and Global IME Balanced Fund-1 will resume on Monday, Ashoj 12, based on these newly adjusted prices. This provides investors with a clear basis for future transactions. In related news, the Nepal Stock Exchange will observe a market holiday on Monday, Ashoj 5. Investors and traders should take note of this closure while planning their trading activities for the upcoming week. Such market holidays are typically announced for various reasons, including national festivals or other significant events, ensuring that the market operates in alignment with national observances. This series of adjustments underscores the dynamic nature of the NEPSE market, where corporate actions frequently lead to price recalibrations. Investors are always advised to stay informed about such developments and understand their implications on their portfolios.
SEBON Charts Course for Modernization: Intraday Trading Set to Transform Nepal's Stock Market
The Nepal Stock Exchange (NEPSE) is on the cusp of a significant transformation, as the Securities Board of Nepal (SEBON) has unveiled a comprehensive concept paper for the introduction of intraday trading in the country's secondary market. This landmark initiative is a pivotal step towards modernizing, enhancing competitiveness, and aligning the Nepali capital market with international standards. The move is a direct outcome of the 'Capital Market Strengthening and Revival Action Plan, 2083' issued by the Ministry of Finance and is a key agenda item in SEBON's current fiscal year policy and programs. The 'Concept Paper on the Implementation of Intraday Trading of Securities in Nepal, 2083' has been released for public consultation, inviting feedback from stakeholders and investors alike. Currently, Nepal's stock market operates predominantly on a delivery-based trading system, where actual ownership transfer occurs only after a stipulated settlement cycle, typically T+2. This means investors must hold shares for at least two business days before they are officially registered in their demat accounts. The introduction of intraday trading will fundamentally alter this dynamic, allowing investors to buy and sell shares within the same trading day, thereby squaring off their positions before market close. This innovative mechanism is expected to usher in a new era of market efficiency, promising increased liquidity, more effective price discovery, reduced transaction costs, and significantly boosted investor participation. SEBON's proposal outlines a phased implementation strategy, carefully considering Nepal's existing market structure, technological infrastructure, and risk management capabilities. In the initial phase, investors will be permitted to engage in a 'Buy First, Sell Later' model. Under this framework, an investor can purchase shares after the market opens and then sell them before the market closes on the same day, managing their profits or losses within that single trading session. This cautious approach is designed to allow market participants to gradually adapt to the new system while mitigating potential risks. The second phase, which will introduce the 'Sell First, Buy Later' or short-selling model, will only be implemented after the full development of the legal and technical infrastructure for Securities Lending and Borrowing (SLB) and covered short selling. This measured progression aims to prevent sudden systemic risks and facilitate the gradual integration of advanced trading tools into the market. To safeguard market integrity and prevent undue price manipulation, not all listed companies will be immediately eligible for intraday trading. SEBON has proposed a 'Nepal Intraday Eligible Securities Framework.' This framework will prioritize companies demonstrating sufficient liquidity, consistent average daily trading value and volume, and a healthy free float of shares available to the public. Furthermore, companies with robust corporate governance practices and those that have not faced severe regulatory actions will be included in the initial list. Conversely, companies exhibiting excessive price volatility or low trading activity will be placed on a watch list and excluded from intraday eligibility. NEPSE and SEBON will conduct quarterly reviews to update the list of eligible securities, ensuring dynamic adaptation to market conditions. Recognizing the inherently higher risk associated with intraday trading compared to traditional delivery-based transactions, investor protection has been accorded paramount importance. A 'Risk-Based Investor Eligibility Framework' has been proposed to ensure that only suitable investors participate. Prospective intraday traders will be required to possess an active Demat and trading account, updated Know Your Customer (KYC) details, a signed intraday agreement, and an accepted Risk Disclosure Statement. Moreover, stockbrokers will be mandated to conduct an initial suitability assessment of their clients' financial capacity, market knowledge, and risk-bearing ability before granting access to intraday facilities. This rigorous screening process underscores SEBON's commitment to fostering a responsible trading environment. At the core of the intraday trading system lies the principle of 'Risk First, Trading Second.' To operationalize this, a 'Nepal Intraday Margin Framework' has been proposed. This framework will define various margin requirements, including Initial Margin, Maintenance Margin, Exposure Margin, and Peak Margin, which will be determined based on the volatility and liquidity of specific shares. During trading, if an investor's margin level falls below a predetermined threshold due to price fluctuations, the broker's Risk Management System (RMS) will automatically issue alerts and margin calls. Crucially, the intraday system will strictly prohibit any overnight open positions, eliminating overnight risk. If an investor fails to close their open positions within the stipulated time, the broker or NEPSE's system will automatically square off the position by buying or selling shares according to predefined rules. This auto square-off mechanism ensures that all trades are settled within the same day, preventing potential financial losses and default risks from carrying over to the next trading session. The implementation of intraday trading will not necessitate the establishment of new institutions but rather involve the technological upgrade and systemic integration of existing market infrastructures. SEBON will assume the overarching role of regulation and supervision, formulating policies, bylaws, directives, and standards. NEPSE will be responsible for operating the intraday trading engine, automated order matching, order classification, and real-time market surveillance. CDSC and Clearing Limited will manage post-trade record reconciliation, Delivery versus Payment (DvP) coordination, and data updates. Stockbrokers will be tasked with real-time client margin monitoring, order management, and internal risk control mechanisms. Banks and financial institutions will also play a crucial role by providing technological coordination for immediate fund payments and margin management. The Securities Act, 2063, provides the fundamental legal basis for the operation of intraday trading. Rather than extensive amendments to the Act, the focus will be on revising NEPSE's trading bylaws, developing Standard Operating Procedures (SOPs) for brokers, creating risk management guidelines, and establishing technical standards to ensure effective and organized implementation. A dedicated task force comprising representatives from SEBON, NEPSE, CDSC, and the Stock Broker Association has meticulously prepared this concept paper. The feedback and suggestions received during the public consultation period will be instrumental in finalizing the necessary regulations and directives. The formal launch of intraday trading in the Nepali capital market will only proceed after thorough technology testing, a pilot phase, and a comprehensive assessment of overall readiness, ensuring a smooth and secure transition. This initiative marks a significant leap forward for Nepal's financial landscape, promising a more dynamic and sophisticated trading environment for investors.
Karnali Yaks Secures Plumber Pipe as Headgear Partner for NPL Season 3, Solidifying Long-Term Collaboration
In a significant development for Nepal's burgeoning sports economy, Karnali Yaks, a prominent franchise team in the Nepal Premier League (NPL), has announced the continuation and evolution of its strategic partnership with Plumber Pipe, a flagship product of Jai Bageshwori Roto Moulding Industries. This renewed collaboration sees Plumber Pipe stepping in as the official 'Headgear Partner' for Karnali Yaks for the upcoming third season of the Siddhartha Bank Nepal Premier League, commencing on October 26. The agreement, formalized with a three-year commitment, underscores a growing trend of corporate entities investing in and nurturing local sports talent and professional leagues. The formal signing ceremony took place recently, with key figures from both organizations present. Gyanendra Malla, Cricket Director for Karnali Yaks, and Nitin Jalan, Managing Director of Jai Bageshwori Roto Moulding Industries, affixed their signatures to the agreement, symbolizing a shared vision for the future of Nepali cricket. This partnership is particularly noteworthy as it builds upon a successful prior engagement where Plumber Pipe served as the main sponsor for Karnali Yaks in the previous NPL season. While the nature of the sponsorship has evolved from a primary sponsor to a headgear partner, the continuity of this long-term relationship highlights the mutual benefits and strategic alignment between the sports franchise and the industrial conglomerate. Gyanendra Malla expressed profound satisfaction with the renewed association, emphasizing that the collaboration transcends mere commercial sponsorship. "This is not just a sponsorship or a business partnership; it is a continuation of trust in Karnali Yaks and a commitment to support our journey," Malla stated. He further articulated his belief that Plumber Pipe's unwavering support would infuse the team with renewed energy and enthusiasm for the third edition of the NPL. Malla also extended his gratitude to Plumber Pipe for their proactive engagement in the development of cricket, a commitment that began with their initial association last season. Such corporate backing is crucial for the financial stability and professional growth of sports teams, enabling them to invest in better training facilities, coaching staff, and player welfare. Nitin Jalan, representing Jai Bageshwori Roto Moulding Industries, echoed Malla's sentiments, expressing excitement about extending their partnership with Karnali Yaks. "We are thrilled to continue our association with Karnali Yaks, an opportunity we've cherished since last season," Jalan remarked. He underscored the broader implications of their collaboration, stating, "Our partnership with Karnali Yaks is not merely limited to brand promotion but also reflects our commitment to contributing to the development of Nepali cricket and the NPL." This statement highlights a growing sense of corporate social responsibility among Nepali businesses, recognizing the potential of sports to unite communities and foster national pride. Jalan also conveyed confidence in strengthening this collaboration further in the years to come, signaling a long-term strategic investment in the sport. The upcoming NPL-3 season, set to kick off on October 26, promises to be an exciting spectacle. Karnali Yaks has already made strategic moves to bolster its squad, including the acquisition of two international players, Mark Watt and Akbar Ali. The inclusion of foreign talent not only elevates the competitive standard of the league but also provides invaluable exposure and learning opportunities for local players. The sustained corporate support from entities like Plumber Pipe is instrumental in attracting such high-caliber talent and ensuring the overall success and sustainability of professional sports leagues in Nepal. This partnership serves as a testament to the increasing commercial viability of sports in the country, paving the way for more robust investments and a brighter future for Nepali athletes and fans alike.