Kathmandu. The Office of the Auditor General has pointed out that it has not created an environment that encourages the private sector to operate private equity funds and venture capital.
In the 61st annual report released by the office on Sunday, it has been mentioned that the regulatory bodies have not been able to bring in institutional investors.
The regulatory body of capital market is Nepal Securities Board. Apart from some mutual funds, the presence of institutional investors is low, the presence of securities brokers has increased but the cost has not been reduced, it is mentioned in the report.
According to the Accounts General, the number of listed companies is low, and the majority of companies, including manufacturing companies, have not issued securities.
It is mentioned in the report that there is a need to increase the sectoral diversity of the market, expand the services of securities traders, facilitate investment for foreign investors and strengthen the regulatory system for the commodity market.
Similarly, the office said that it is necessary to restructure the government-owned Nepal Stock Exchange Limited (NEPSE) and increase the scope and size of the capital market.
