Nepal's capital markets face a structural disconnect: while the number of demat accounts has surged to 8 million, the market lacks the institutional depth and instrument diversity required to sustain that participation.
The Nepal Stock Exchange (Nepse) remains constrained by limited trading tools and weak foundational infrastructure, leaving the market vulnerable to volatility despite high retail interest.
Since Balendra Shah assumed office, the Nepse benchmark index has shed more than 380 points, signaling that political change has not yet translated into investor confidence or market stability.
The anticipated recovery following the recent political transition has failed to materialize.
Since Balendra Shah assumed office, the Nepse benchmark index has shed more than 380 points, signaling that political change has not yet translated into investor confidence or market stability.
The decline reflects broader concerns about the market's ability to absorb retail capital without corresponding improvements in liquidity and governance.
Recent trading sessions have underscored the fragility of the current setup.