For some time now, the public's interest in the primary market has been growing. Along with the growing attraction, investment in the primary market of the Nepali capital market has also increased. Applications for IPOs that have been issued in recent times are setting new records in each issue.
At a time when the general public's interest in the stock market is increasing, it seems that the time has come for the concerned agencies to mobilize the desired investment in the market.
When a company issues an IPO worth Rs 4-5 crore, there is a demand for shares worth billions of rupees. Thus, in order to maintain the significant participation of investors in the market, the stakeholders need to come up with a proper plan. Market insiders say the government needs to come up with a new plan to keep up the momentum.
Investor Ambika Prasad Poudyal says that in order to mobilize the enthusiastic investment seen in the recent IPO, it is necessary to create an investment environment in a company that can distribute the return on investment quickly. He said that the government should make arrangements for the general public to invest in multinational companies.
Poudyal stressed on the need to take initiatives to bring companies with large capital and ability to deliver good returns to the market. Poudyal said that the government should create an environment to bring Ncell, Dabur Nepal and the companies mentioned in the government's policy and program to the market as soon as possible.
He stressed that if such companies are reluctant to sell their shares to the public, binding rules should be made and arrangements should be made to bring them into the market. He believes that if this happens, the current enthusiasm in the market can be maintained.
If not, he said, investing in a company that has not distributed returns for years would increase the risk of the public fleeing the market.
We have a vivid example of the government's failure to invest in well-known hydropower companies in recent years. Even now, the cost of some projects constructed with public investment is increasing day by day. Not only the investors but also the operators themselves are ignorant about when these companies will produce and give returns to the general public.
Investor Poudyal is of the view that such delays by companies with public investment will definitely shake the minds of investors. Therefore, the work of projects invested by the general public should be completed quickly and the returns should be distributed in a short time, he said. If this happens, the general public will be attracted to invest more.
Similarly, Romnath Rimal, who has been teaching finance at Manmohan Memorial College, says that the government should create a conducive environment for investment now seeing the attraction of investors in the primary to secondary markets. Rimal understands that the government has shown that it is ready to invest more by ensuring the investment of the general public towards the primary and secondary markets of the stock market.
He said that the government should encourage the companies of other sectors including good manufacturing companies to enter the market in order to mobilize the small investment of the common people and also emphasize on mobilizing the small amount of common people.
Rimal suggests that it is time for the government to envisage projects that involve the general public along with companies that are in the process of being listed on the stock exchange.
Rimal emphasizes that investors should be mobilized by investing a small amount of money from the common people. He is confident that this will encourage the general public to invest more in the company with their small investment.
The provision of investing from Rs 1,000 in the primary market has helped the general public to believe that they can get a good return even with a small amount of money. As a result, it has been proved that the general public is gradually developing the habit of investing.
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