18 Chait, Kathmandu. Investors were excited after the formation of a two-thirds majority government under the leadership of Balendra Shah last Friday, and they also expected more excitement in the stock market from Sunday.

However, after the formation of the government, the former Prime Minister KP Sharma Oli and the former Home Minister Ramesh Ukhtar were arrested and the UML started a street protest. Due to the fear of confrontation, the stock market had the opposite effect. On Sunday and Monday, the market went down with high marks. On Wednesday, the stock market, which had risen normally on Tuesday, experienced an even bigger landslide.

On the one hand, there was a fear of a political encounter, on top of that, when rumors spread that the Money Laundering Investigation Department was preparing to investigate many businessmen, it also made the stock market ripple.

The government has already arrested former minister and businessman Deepak Khadka in a case related to money laundering. Just on Tuesday, another businessman, Deepak Bhatt, has been blacklisted by the Immigration Department following a letter from the Money Laundering Investigation Department.

Stakeholders say that the market may have fallen as investors panic amid doubts that other businessmen will also be dragged into the money laundering investigation.

Narendra Sijapati, the former president of Stockbrokers Association of Nepal, says that behind the high rate of decline in the market, there is an unnecessary fear of asset laundering. He says that it has made the market unnecessary.

The stock market is a transparent market that is completely transacted through the banking system. In that case, there is no possibility that anyone can sell the shares today and hide the proceeds.

Not only that, another broker says that no one invests in a transparent market like the stock market. Therefore, another broker said on condition of anonymity that big investors do not sell shares in a hurry based on the fact that the money laundering investigation department has started its investigation.

Nepal Investors Forum President Tulsiram Dhakal says that there is no reason for investors to panic with the Asset Laundering Department.

“This government has already made some decisions that are friendly to the private sector, one of the areas that need to be maintained is the capital market, which is a priority,” he said.

He claims that since all transactions in the capital market are done through the banking system, the understanding that illegal funds have entered the market is wrong.

“Broker companies do not take or give cash when buying and selling shares, so there is no need to make a false comment as if the illegal amount is in the stock market,” he said.

He said that the government’s policies are capital market-friendly, there is no opportunity for investment in other sectors, and the bank interest rate is at a low point, so the capital market is the only option.

Sijapati, the former chairman of the Stock Brokers Association, also says that there is no need for investors to panic based on the fact that the Money Laundering Investigation Department has started an investigation on a certain businessman.

“It is the duty of the state to control wealth laundering, some businessmen may have invested illegal income in the market,” he said.

Favorable policies for the capital market are being made rapidly. Recently, Nepal Stock Exchange (NEPSE) has prepared margin trading procedures. The list of eligible companies for margin trading has been published.

Broker companies will provide margin lending facility from April. Investors believe that this arrangement will accelerate the market in a sustainable manner.