Nepal Capital Market Discourse 2026 Concludes with Calls for Structural Reforms and Innovation

Nepal’s capital market needs a comprehensive transformation in regulation, technology, investor participation, financial products, and institutional capacity to support the country’s broader economic development, stakeholders said at the Nepal Capital Market Discourse 2026.

The discourse brought together representatives from regulatory bodies, government agencies, the private sector, stock brokers, merchant bankers, and other capital market institutions to discuss the future direction of Nepal’s securities market. Speakers emphasized that the market should no longer remain focused primarily on share trading but should evolve into a broader mechanism for mobilizing capital for production, entrepreneurship, employment, startups, small and medium enterprises (SMEs), and economic growth.

Addressing the event, Securities Board of Nepal (SEBON) Chairman Dr. Gopal Bhatta said the regulator is preparing to introduce an artificial intelligence (AI)-based supervision system to strengthen surveillance of the securities market.

According to Bhatta, technological advancement will be incorporated into market monitoring to make supervision more efficient and effective. He also said SEBON is working to diversify Nepal’s capital market by encouraging instruments beyond ordinary shares, including bonds, debentures, startups, and SMEs.

Bhatta said efforts are also underway to improve the primary market by developing a system for real price discovery and reforming the existing IPO process. He further indicated that preparations are being made to introduce new regulations for stock brokers as part of the broader reform process.

The discourse also highlighted several structural challenges facing Nepal’s capital market. Participants discussed the decline in market capitalization and stressed the need for more effective surveillance, stronger risk-management mechanisms, and the introduction of appropriate hedging instruments.

Speakers also called for greater institutional autonomy and reforms within SEBON. They argued that strengthening the regulator’s institutional capacity would be essential for ensuring a more transparent and credible market.

The expansion of the role of stock brokers was another key issue. Participants suggested that brokers should gradually be allowed to operate within a broader investment-banking framework, enabling them to provide a wider range of financial services and contribute more effectively to capital mobilization.

Investor participation and financial literacy emerged as another major concern during the discourse. Although Nepal has approximately 80 lakh Demat accounts, only around 17 lakh investors are considered active. Speakers said the large gap between registered accounts and active participation demonstrates the need for stronger investor education and financial literacy programs.

Participants emphasized that financial literacy should be expanded beyond major urban areas and taken to the grassroots and rural levels. Investors, they said, should be equipped with the basic skills required to understand financial statements, balance sheets, company performance, risks, and investment decisions. The speakers stressed that an informed investor base is essential for building a sustainable and resilient capital market.

The discourse also featured an international perspective from Gobindayapali Ram Mohan Rao, Executive Director of the Securities and Exchange Board of India (SEBI). Rao said Nepal is entering a new phase of capital market development, describing the country as moving toward “Capital Market 2.0.” He emphasized the need for Nepal to establish a clear and comprehensive reform roadmap covering the next 10 years. He said long-term planning and institutional reforms would be crucial for developing a mature capital market capable of supporting investment, businesses, and the wider economy.

The first session of the discourse, titled “Product, Policy and Regulation: The Future of Nepal’s Capital Market,” focused on financial products, regulatory and legal reforms, SEBON’s autonomy, the role of brokers, and price discovery mechanisms. The session featured Mahesh Acharya, Joint Secretary at the Ministry of Finance; Binaya Dev Acharya, Executive Director of SEBON; Priya Raj Regmi, Chair of the FNCCI Capital Market Committee; Raj Kumar Timilsina, Executive Chairman of Vision Securities; and Arpan Khanal, Founder and CEO of National Capital.

The second session, “Informed Investors, Strong Capital Market: Role of Awareness and Literacy,” examined investor education, financial literacy, investor protection, and ways to increase the number of active investors. Rupesh KC, Executive Director of SEBON; Tulsi Ram Dhakal, Chair of Investors Forum Nepal; Madan Poudyal, Chair of NASA Securities; Manoj Poudel, Founder of Adhyanta Fund Management; and Parmeshwar Pant, CEO of Himalayan Capital participated in the session.

Technology and innovation were at the center of the third session, titled “Technology and Innovation: The Future of Nepal’s Capital Market.” The session brought together Narayan Prasad Sharma, Deputy Executive Director of Nepal Rastra Bank; Kanchan Sapkota, Acting CEO of CDS and Clearing Limited; Murahari Parajuli, spokesperson for Nepal Stock Exchange (NEPSE); Manish Aryal, CEO of Citizens Share Broker; and Deepesh Kumar Vaidya, CEO of NMB Capital. The participants discussed the growing role of digital infrastructure, technology-based trading systems, innovation, and digital services in improving accessibility and efficiency in Nepal’s capital market.

The opening session also featured senior representatives from Nepal’s business and capital market sectors, including Birendra Raj Pandey, President of the Confederation of Nepalese Industries; Kamlesh Kumar Agrawal, President of the Nepal Chamber of Commerce; Sur Krishna Vaidya, Senior Vice President of FNCCI; Sagar Dhakal, President of the Stock Brokers Association of Nepal; and Ramendra Rayamajhi, President of the Merchant Bankers Association. They discussed the need to expand investment opportunities, strengthen the market’s long-term foundations, and establish a stronger connection between capital-market activities and the real economy.

In addition to the three thematic sessions, the discourse featured two special duologue sessions. One of the key discussions brought together SEBON Chairman Dr. Gopal Bhatta and SEBI Executive Director Gobindayapali Ram Mohan Rao, providing an opportunity to exchange views on regulatory development, market modernization, and the future direction of Nepal’s capital market.

The Nepal Capital Market Discourse 2026 underscored the need for coordinated reforms across regulation, technology, financial products, investor protection, institutional capacity, and financial literacy. The discussions emphasized that a modern and transparent capital market can play a much larger role in channeling savings into productive investment, supporting entrepreneurship and employment, attracting investment, and contributing to Nepal’s long-term economic growth.