SEBON Unveils Comprehensive Capital Market Reform Agenda, Prioritizing Investor Protection and Market Development
Based on Securities Exchange Board of Nepal (SEBON), Nepal's capital market has reached an important stage of development. Significant progress has been made in institutional development, the use of digital technology, expansion of investor access, and improvement of the regulatory framework. However, there remains a need to further strengthen the size and depth of the capital market, diversify financial instruments, expand institutional investment, enhance corporate governance, establish an effective regulatory system, and place investors at the center of market development.
Accordingly, under its Fiscal Year 2083/84 policy and program implementation plan, SEBON has identified the following key priority initiatives, summarized below.:
- Strengthen investigations into securities-related crimes.
- Crack down on finfluencers, unauthorized advisors, and market manipulation.
- Reform and streamline the IPO approval process.
- Improve implementation of margin trading.
- Review lock-in periods and over-allotment rules.
- Reduce transaction fees in capital markets.
- Introduce Free Float-based benchmark indices.
- Regulate public capital raising conducted through social media and informal platforms.
- Publish a long-term Capital Market Development Roadmap and implementation action plan
In addition to the above reforms, the Board will make public through its website the Capital Market Development Roadmap for the coming decade, along with the Capital Market Policy and its Implementation Action Plan for Fiscal Year 2083/84. These initiatives aim to develop Nepal's capital market into a credible, transparent, competitive, inclusive, and internationally aligned market, mobilize national savings toward productive sectors, and contribute significantly to the country's economic transformation.
