Finance Minister’s Secretariat Urges Investors to Ignore Market Rumors, Says Regulatory Reforms Underway

The Secretariat of Finance Minister Dr. Swarnim Waglé has urged investors to remain cautious against what it describes as “misleading and sponsored rumors” surrounding Nepal’s stock market, insisting that regulatory reforms are progressing despite recent market volatility.

In a public statement issued on the first day of the new fiscal year 2083/84 (2026/27), the Secretariat said attempts were being made to create unnecessary panic among investors by spreading false narratives about the government’s policies and the condition of the capital market. It maintained that the government remains committed to strengthening market transparency, improving regulation, and protecting genuine investors.

The statement comes at a time when Nepal’s stock market has experienced a sustained decline, leading to frustration among retail investors. While acknowledging the market’s recent weakness, the Secretariat argued that some individuals were deliberately portraying the situation as a systemic crisis to influence investor sentiment for personal or financial gain.

Referring to the infamous Harshad Mehta securities scam in India in the early 1990s, the Secretariat warned that individuals attempting to manipulate Nepal’s capital market or exert undue influence over regulatory institutions would face legal scrutiny. It stated that authorities had already begun investigating activities aimed at disrupting the integrity of the securities market, although it did not disclose specific names or ongoing cases.

The Finance Minister’s office also dismissed circulating rumors claiming that certain market participants were about to be arrested or were already under investigation. According to the Secretariat, such reports are “sponsored misinformation” intended to create fear and trigger irrational trading decisions.

“The government believes in acting rather than making sensational announcements,” the statement said, urging investors not to rely on unverified information circulating through social media platforms, messaging groups, or self-proclaimed market experts.

Investors were advised to verify information through official government agencies and regulatory bodies before making investment decisions. The Secretariat stressed that financial decisions should be based on research, company fundamentals, and official disclosures rather than speculation or online rumors.

Highlighting broader economic conditions, the Secretariat claimed that Nepal’s macroeconomic indicators have been improving. It pointed to increased banking sector liquidity, declining interest rates, a stable political environment, and ongoing appointments of experienced professionals in regulatory institutions as signs of improving economic confidence.

The statement also referenced recent government measures aimed at encouraging investment and economic activity, including tax relief for certain taxpayers and settlement mechanisms for long-standing revenue disputes. According to the Secretariat, these initiatives are intended to improve the investment climate and support sustainable economic growth.

Market analysts say investor confidence ultimately depends on consistent policy implementation, transparent regulation, and fair enforcement of securities laws. They note that while rumors can contribute to short-term volatility, long-term market performance is generally driven by corporate earnings, economic fundamentals, and regulatory credibility.

The government’s latest appeal underscores its effort to reassure investors that reforms are continuing and that misinformation should not dictate investment decisions in Nepal’s evolving capital market.