Gold price drops by Rs 300 per tola on Wednesday
The price of gold has dropped by Rs 300 per tola in the domestic market on Wednesday.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 150, 500 per tola today. It was traded at Rs 150, 800 per tola on Tuesday.
Similarly, the price of silver has dropped by Rs 5 and is being traded at Rs 1,735 per tola today.
Nepse plunges by 8. 18 points on Tuesday
The Nepal Stock Exchange (NEPSE) plunged by 8. 18 points to close at 2,923.46 points on Tuesday.
Similarly, the sensitive index dropped by 1. 32 points to close at 511. 15 points.
A total of 52,764,832-unit shares of 332 companies were traded for Rs 21. 51 billion.
Meanwhile, Matribhumi Lagubitta Bittiya Sanstha Limited (MATRI), People's Power Limited (PPL) and Dolti Power Company Limited (DOLTI) were the top gainers today with their price surging by 10. 00 percent.
Likewise, Kisan Laghubitta Bittiya Sanstha Limited was the top loser with its price dropped by 9. 93 percent.
At the end of the day, the total market capitalization stood at Rs 4. 64 trillion.
Gold price hits new record at Rs 150, 800 per tola
The price of gold has increased by Rs 2, 100 per tola in the domestic market on Tuesday.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 150, 800 per tola today.
Similarly, the price of silver has increased by Rs 25 and is being traded at Rs 1,740 per tola today.
New law proposes creating an authority for financial cooperatives
The government has started preparation to form an authority for the supervision and regulation of financial cooperatives. The Ministry of Land Management and Cooperatives has drafted the Financial Cooperative (Regulation and Supervision) Act, 2024, proposing the creation of an authority responsible for licensing, regulating, and supervising financial cooperatives that mobilize deposits from the public and disburse credit.
The law, currently in the drafting phase, grants the authority the power to determine minimum capital requirements for financial cooperatives, issue licenses, classify cooperatives, and conduct monitoring and supervision, among others.
The government, through the budget for the fiscal year 2024/25, announced its intent to create a separate body for the supervision and regulation of financial cooperatives. The ministry drafted the law in line with this intent, an official of the ministry said. According to the official, the authority will be an autonomous institution governed by a seven-member board, with the chairperson appointed by the government.
As per the draft law, cooperatives with transactions exceeding Rs 50m, capital over Rs 15m and individual savings above Rs 1m must obtain a license from the authority. Cooperatives that are already in operation are also required to obtain a license from the authority once it becomes operational.
The draft law also proposes classifying financial cooperatives into three categories based on share capital, the nature of transactions, and the operational area. It allows the authority to determine the minimum capital floor for financial cooperatives.
Currently, federal, provincial, and local governments have the power to register and regulate cooperatives based on their transactions, operational areas, and nature of business.
The government began preparations to form a powerful institution for the supervision and regulation of cooperatives after cooperative promoters misused people's deposits, taking advantage of the lack of regulatory oversight.
A committee formed by the government last year recommended regulating cooperatives with large transactions through Nepal Rastra Bank (NRB) as an immediate measure and forming a powerful authority in the long run. Although parliament amended the Nepal Rastra Bank Act, 2001, to pave the legal way for the central bank to regulate large cooperatives, the central bank has been slow to act.
The International Monetary Fund (IMF) has also expressed concern about savings and credit cooperatives, stating that a social unrest could be triggered if the ongoing problems are not dealt with soon. “A combination of large data gaps, weak governance, unsound credit and liquidity risk management, and a lack of licensing, effective regulation, monitoring, and supervision has resulted in the failure and closure of multiple cooperatives,” the IMF said in its review of Nepal under the Extended Credit Facility (ECF) arrangement.
Stating that a proper licensing process hasn’t been established under the current regime, the IMF suggested that licensing of savings and credit cooperatives is necessary for both existing and new entities.
