SEBON Unveils Capital Market Development Blueprint 2083, Sets Vision for a Modern and Globally Competitive Market

The Securities Board of Nepal (SEBON) has unveiled its Capital Market Development Blueprint 2083 along with its Policy and Programme for Fiscal Year 2083/84, outlining an ambitious long-term strategy to transform Nepal's capital market into a transparent, technology-driven, competitive, and internationally recognized financial system.

The blueprint envisions shifting Nepal's capital market from being merely a complementary financing mechanism to the banking sector into a strategic pillar of national economic development. It seeks to mobilize domestic and foreign savings into productive sectors such as infrastructure, hydropower, manufacturing, agriculture, information technology, innovation, and entrepreneurship.

One of the major priorities of the new policy is enhancing investor protection and market integrity.

SEBON announced that it will introduce stricter monitoring of so-called "finfluencers," social media personalities and online content creators who attempt to influence stock prices or provide unauthorized investment advice. The regulator plans to curb misleading market promotions and strengthen oversight of digital platforms to prevent market manipulation.

The board also plans to tighten the Initial Public Offering (IPO) approval process. Companies seeking to issue shares will undergo more rigorous evaluations covering their financial health, governance practices, business viability, and managerial competence before receiving regulatory approval.

In addition, SEBON will regulate unauthorized public fundraising activities conducted through social media before IPO issuance, preventing companies from collecting money from investors without proper regulatory approval.

To encourage greater participation in the capital market, SEBON plans to review and reduce various fees charged in both the primary and secondary markets.

The regulator will also introduce a new benchmark stock index based on free-float shares, replacing reliance on broader market capitalization-based indicators. The move is expected to provide a more realistic picture of market performance and improve transparency for investors.

SEBON has pledged to fully operationalize margin trading in coordination with Nepal Rastra Bank (NRB) and the Nepal Stock Exchange (NEPSE). The initiative is expected to improve market liquidity, increase trading activity, and provide investors with additional financing options.

The Capital Market Development Blueprint outlines a comprehensive three-phase national roadmap:

1. Phase I (2026–2027): Legal, institutional, and regulatory reforms.
2. Phase II (2028–2030): Market expansion, diversification of financial products, and digital transformation.
3. Phase III (2031–2036): Internationalization, regional integration, and development of a globally competitive capital market.

The strategy also includes reforms in collective investment schemes, reviews of mutual fund lock-in periods and allocation mechanisms, stronger inter-agency coordination in securities crime investigations, and modernization of market infrastructure.

SEBON has set several ambitious targets to be achieved by 2036, including:
1. Increasing market capitalization to more than 150% of GDP, up from the current level of around 70–80%.
2. Expanding the number of listed companies from nearly 300 to over 500.
3. Raising average daily stock market turnover from around Rs 8 Arba to Rs 30 Arba.
4. Increasing Demat accounts from approximately 80 lakhs to more than 1.20 crores.
5. Raising institutional investor participation to over 40% of total market trading.
6. Expanding the corporate bond market to account for 20% of the capital market.
7. Increasing mutual fund schemes from 56 to more than 150.
8. Introducing listings for over 200 Small and Medium Enterprises (SMEs).
9. Promoting regular issuance of Green Bonds.
10. Gradually allowing foreign portfolio investment through institutional participation.

SEBON emphasized that a well-functioning capital market is a key national mechanism for converting public savings into productive investments. The board noted that developed capital markets are widely recognized by institutions such as the World Bank, International Monetary Fund (IMF), and OECD as fundamental drivers of economic growth, capital formation, industrialization, productivity, and investment expansion.

According to SEBON, Nepal's capital market has evolved significantly over the past three decades with the establishment of SEBON, NEPSE, CDS and Clearing Limited (CDSC), Demat accounts, the Mero Share system, ASBA, and online trading platforms. However, the next stage of development will focus not only on expanding the size of the market but also on improving its quality, governance, technological capability, and international competitiveness.

The long-term vision is built around seven strategic priorities:
i. Strengthening the legal and regulatory framework
ii. Deepening and diversifying the capital market
iii. Expanding institutional investors
iv. Building a technology-driven securities market
v. Enhancing investor protection and financial literacy
vi. Promoting internationalization and foreign investment
vii. Supporting innovation, SME financing, and sustainable finance

SEBON stated that these reforms are intended to transform Nepal's capital market into a reliable, transparent, inclusive, and technology-oriented financial system capable of supporting sustainable economic growth and attracting both domestic and international investment.