SEBON Unveils Draft Collective Investment Fund Policy 2083 for Public Consultation

The Securities Board of Nepal (SEBON) has published the draft Collective Investment Fund Policy, 2083 for public consultation, seeking feedback from investors and other stakeholders to strengthen and modernize Nepal’s mutual fund industry.

The draft policy has been prepared in line with the Capital Market Strengthening and Revival Action Plan, 2083, issued by the Ministry of Finance on Bhadra 29, 2083. The action plan calls for the development of instruments such as the bond market, money market and exchange-traded funds (ETFs), while establishing mutual funds as professional, diversified, transparent, risk-conscious, technology-friendly and long-term investment vehicles.

SEBON said the proposed policy aims to provide an integrated framework for the establishment, operation, regulation and supervision of collective investment funds. It seeks to make the industry more modern, transparent, secure and competitive while strengthening long-term capital mobilization, investor protection and the development of institutional investors.

The policy gives priority to open-ended mutual fund schemes and proposes the development of new investment instruments, including ETFs, Real Estate Investment Trusts (REITs), infrastructure funds and green funds.

It also emphasizes portfolio diversification, transparent asset valuation methods, effective liquidity and redemption management, and timely disclosure of information to investors.

The proposed policy places greater emphasis on investor protection through enhanced transparency, grievance-handling mechanisms, conflict-of-interest controls, competitive fee structures, risk management, and institutional governance.

Digital services and cybersecurity have also been incorporated as important components of the proposed regulatory framework.

SEBON has also recognized the specialized role of fund managers in the effective operation of collective investment schemes. The policy therefore seeks to strengthen fund managers’ professional capabilities, human resources, information technology infrastructure and overall management capacity.

It also proposes linking management fees more closely with the performance of fund managers.

SEBON expects the phased implementation of the policy to help mobilize the long-term savings of small investors into the capital market, expand investment opportunities and contribute to greater market stability.

The board has invited investors and stakeholders to review the draft Collective Investment Fund Policy, 2083, and submit their suggestions and recommendations. Stakeholders have been requested to provide feedback by Kartik 15, 2083.

https://sebon.gov.np/uploads/2026/10/15/47h20tXFNEcD3dy8SviKPn9Gkh2pSzRVdMuLN4c6.pdf