Kathmandu. Economist Dr. Chandramani Adhikari has said that the current situation of the capital market cannot be explained by linking it to just one reason. He said that various factors such as the influence of limited people in the market,the allegations of insider trading and the psychology of investors are affecting the market.

He said that in the past, there was a lot of talk in the market that a limited number of people had a grip on the stock market and insider trading, and some of its effects can still be seen today. “I can’t say it’s 100 per cent, but there were discussions in the market. Some groups that used to play a role in the market are now not active, which may have had an impact on the market,” he said.

According to the official, small investors cannot change the overall direction of the market by investing two or three lakh or four lakh rupees.According to him, there are many structural and psychological reasons behind the fluctuations in the market.

He said that the psychology of investors will also affect the market. According to him, investment expansion would not be possible until an environment of full trust is created in the government even though some investors do not openly express their dissatisfaction.

‘There will be no investment environment until there is complete trust in the government. “To attract investment, administrative processes should be simple, policies and laws should be clear and easy, and the government mechanism should not cause unnecessary hassles to the investors,” said Adhikari. ’

According to him, administrative and structural reforms are necessary to create investment-friendly environment. Stating that the government has made efforts to bring some smoothness in the administrative process in recent period, he pointed out the need of making such reforms more effective and continuous. “Transparency, good governance, policy stability and investor confidence are the most important pillars for the development of the capital market in the long run,” he said.