SEBON Prepares to Introduce New Market Products as Brokers Push for Legal Reform

The Securities Board of Nepal (SEBON) is preparing a series of reforms aimed at modernizing the country’s capital market, with new financial products, clearer trading mechanisms and stronger regulatory standards expected to be introduced.

SEBON Chairperson Dr. Gopal Prasad Bhatta said the regulator is working to expand the range of instruments available in the market to create new opportunities for investors and increase activity in the stock market.

Speaking at an interaction organized by the Stock Brokers Association of Nepal, Bhatta said the development of new products would be important for making Nepal’s capital market more dynamic and competitive.

Bhatta said SEBON will establish a clear framework for cash and credit transactions in the securities market. He expressed the view that the margin trading mechanism currently being implemented could help resolve several problems associated with the existing credit-based trading system.

He also said the regulator is preparing to issue new guidelines covering key aspects of capital market operations.

According to Bhatta, the upcoming guidelines will emphasize investor protection, risk-based regulation and institutional governance. He added that SEBON is working on reforms in both the primary and secondary markets.

Stock Brokers Association of Nepal President Sagar Dhakal urged the government and regulator to revise securities-related laws that were formulated more than two decades ago.

Dhakal said the capital market has undergone significant changes since those laws were introduced and argued that the legal framework should be updated to reflect current market practices and technology. He also called for the introduction of an Auto-EDIS system to simplify and improve the share transfer and settlement process.

Priya Raj Regmi, Chairperson of the Capital Market Forum at the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and former FNCCI president, said maintaining investor confidence should remain a priority for the development of the capital market.

He called for modernization of the brokerage sector and urged market participants to work in accordance with SEBON’s broader reform objectives. During the interaction, Association Vice President Nitesh Kumar Agrawal presented a proposed roadmap for capital market development.

The event, moderated by Association General Secretary Bhakti Ram Ghimire, brought together SEBON’s senior management team and representatives from more than 80 brokerage firms.

The discussions focused on regulatory improvements, technological modernization, and measures to make Nepal’s capital market more efficient and investor-friendly.