Legal Aspect of Money Market and Capital Market in Nepal
Suman Acharya, Jyoti Koirala
Abstract
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Suman Acharya, Jyoti Koirala
Abstract
Open-access reader
Money market and capital market are basic building block of the economy. Money market is regulated by the central bank whereas capital market is regulated by securities regulator. Similarly, money market provides short term investment whereas capital market makes medium term and long term investment. Moreover, banks and financial institutions and insurance companies are the vehicle of money market whereas brokers companies and shareholders are the vehicle of capital market. In Nepal, capital market makes transaction in equity shares, preference share, debentures, government bonds and mutual fund. Additionally, Securities Act, 2063 BS (2007 AD) and Commodities Act, 2074 BS (2018 AD) are major legal instruments for capital market in Nepal and Banks and Financial Institutions Act, 2073 BS (2017 AD) and Nepal Rastra Bank Act, 2058 BS (2002 AD) are principle legal instruments for money market in Nepal.
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Money market and capital market are basic building block of the economy. Money market is regulated by the central bank whereas capital market is regulated by securities regulator. Similarly, money market provides short term investment whereas capital market makes medium term and long term investment. Moreover, banks and financial institutions and insurance companies are the vehicle of money market whereas brokers companies and shareholders are the vehicle of capital market. In Nepal, capital market makes transaction in equity shares, preference share, debentures, government bonds and mutual fund. Additionally, Securities Act, 2063 BS (2007 AD) and Commodities Act, 2074 BS (2018 AD) are major legal instruments for capital market in Nepal and Banks and Financial Institutions Act, 2073 BS (2017 AD) and Nepal Rastra Bank Act, 2058 BS (2002 AD) are principle legal instruments for money market in Nepal.
Key concepts: Business, Financial system, Capital market, Bond market, Finance, Money market, Factor market, Monetary economics