Last Friday, the Chairman of the CPN-Maoist Center and former Prime Minister Pushpa Kamal Dahal Prachanda made a statement about the share market. He said that securities were a developed form of imperialism and it was sad that capital was invested in capital.
Prachanda is not only the leader of the ruling coalition, but his party leader Janardan Sharma is also holding the finance ministry. Some investors have lashed out at Prachanda for making negative comments about the stock market.
Chief Adviser to the Government, Deputy Chairman of the National Planning Commission, Dr. Viswanath Poudel has refuted Prachanda’s statement. He not only called the stock market a gamble or a tool of imperialism but also claimed that the stock market was an alternative means of securing one’s property. The Vibekshil Saja Party has demanded to withdraw Prachanda’s statement saying it is irresponsible.
Small and big investors in the stock market have criticized Prachanda’s statement on social media. The market, which has reached above 3200 points, has been continuously declining recently and has dropped to 2200 points till Monday.
Shareholder Ambika Prasad Poudal says that Prachanda’s remarks have added to the nuances as the stock market continues to decline. He claimed that the investors had to lose Rs.
Banking expert Parshuram Kunwar Chhetri says that Prachanda’s statement is wrong. He said that leaders should speak only after understanding. Many Chinese companies are listed on the US Stock Exchange, and he asks, “Is China also a developed form of imperialism?”
The Nepal Stock Exchange (NEPSE) is the only trading body in Nepal. Neighboring India shares are traded through two stock exchanges, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). There are three stock exchanges in communist China. The Shanghai Stock Exchange is the third-largest stock exchange in the world.
The spokesperson of the Nepal Stock Exchange Murahari Parajuli says that Prachanda’s statement is wrong. “China has three major stock exchanges and Shanghai is the third-largest in the world. Someone would have told him, ”he wrote on Twitter, targeting Prachanda.
Statement of the Secretariat
Prachanda’s personal secretary Ramesh Malla has defended Prachanda’s statement. ‘The theoretical issue raised by Chairman Comrade Prachanda yesterday about the capital market is absolutely correct. However, we would like to make it clear that the party will take conscious initiative and make efforts to protect the investment of investors in the current Nepali capital/stock market, and to protect the interests of even smaller investors, ”he said on Twitter.
Amid criticism of Prachanda’s remarks, his party leader and finance minister Janardan Sharma said in a program on Monday that the finance ministry was serious about protecting the investment of all investors.
While laying the foundation stone of the office building of the Insurance Committee, Finance Minister Sharma informed that the Ministry has already investigated and taken action against the irregularities in the market.
Stock market analyst Hari Kumar Karki says that the stock market has started declining due to the monetary policy provisions and Prachanda’s remarks have contributed to it. But he says policy reforms are needed to improve the market.
Although Prachanda’s secretariat tried to correct his statement, it was not clear. Stating that the Nepali Congress, CPN-UML, and the Maoist Center are proud of the fact that their active members have reached 8/10 lakh, Karki said, “There are half a crore people here in the (share) market. The political parties have to understand that.”
Karki says that the political parties will have to pay a high price tomorrow because of the stock market. He said that other parties should also have their say on the stock market.
Though Finance Minister Sharma has said in the public forum that he is serious about the capital market, investors say that the government is not serious about the market.
Karki, a long-time chairman of the Securities and Exchange Board and chief executive officer of the Nepal Stock Exchange, said the government’s indifference was apparent.