Interaction Program on "Futures and Derivatives Market"

Mercantile Exchange Nepal Limited and New Business Age jointly organized "An interaction program on Future and Derivative market" here on Friday. Challenges and opportunities of futures and derivatives market was discussed broadly at a program held at Del' Annapurna. Opinion and perception from various participants from wide array of field including NRB, SEBON, Banking and commodities market interact to promote, evaluate the scope, challenges and future perspectives of newly emerged derivative market in Nepal.

Chief Guest of the program, Mr. Krishna B. Manandhar, deputy governor of NRB said, Even though Futures and Derivatives market has emerged as prominent lucrative venue in Nepal, it has high risk and no regulatory bodies to monitor effectively. Hence, investors at this market could face in-partiality, lack of proper regulatory and could occur in hefty loss.

Similarly, Siddhanta Raj pande, CEO of Ace Development bank opined, there should be strong regulatory bodies to govern the futures market, sophisticated and reliable warehouse should be develop so as to deliver the products as per demand and there should be limited but proper managed exchanges so as to promote and develop this market effectively.

Similarly, Chairman of SEBON, Financial Advisor of Finance Ministry, representative from World Bank (Neapl), General Manager of Nepal Stock Exchange, Chairman of Bankers association and respective personalities from various field explore the need and challenge of futures and derivative market and gave contemplation to act in positive approach.

At conclusion, following points were mostly highlighted at an interaction program.

· There is lack of government regulations in Futures and Derivatives market, hence regulatory body need to act very soon to let hand in market efficiency, lucrative and partiality.

· There should be standardized warehousing with sophisticated and reliable quality standard measurement for products.

· Qualified and knowledge based human resource need to be build up for further advancement and market functioning.

· Internet connection should make thorough and speed access to assist the trade.

· Systematic and thorough knowledge to investors, brokers and respected individuals need to be disseminating in proper manner so as to maintain trade effectively and rationally.
Source:Jamb News Service