SEBON Unveils Primary Capital Market Reform Policy 2083 to Boost Transparency and Investment

Nepal has unveiled the Primary Capital Market Reform Policy, 2083, aimed at modernizing and improving the country’s primary capital market through necessary policy and legal reforms.

The policy has been prepared by a Primary Market Reform Facilitation Taskforce formed by the Securities Board of Nepal (SEBON), with participation from key market stakeholders, including merchant bankers and representatives of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

The policy seeks to make Nepal’s primary capital market more modern, efficient and investor-friendly while ensuring easier access to long-term capital for industries, infrastructure projects, innovation, small and medium-sized enterprises (SMEs), and green and sustainable development projects.

It also emphasizes strengthening regulation, corporate governance, and transparency while developing a technology-driven system for public offerings.

The policy aims to establish the primary capital market as a major source of financing for national economic development. It envisions making the public issuance process fully transparent, digital and time-bound, alongside the implementation of a scientific and market-based pricing mechanism.

The policy has also prioritized the effective participation of eligible institutional investors and anchor investors in public offerings.

It proposes developing mechanisms to ensure effective utilization and monitoring of capital raised after public issuance. Such measures are expected to improve accountability and ensure that funds mobilized through the capital market are used for their intended purposes.

Investor protection and strengthening public confidence in the capital market have also been identified as key priorities.

The policy seeks to expand access to the capital market for SMEs, technology-based enterprises, innovation-driven businesses and high-growth companies.

By facilitating their access to long-term financing through the capital market, the policy aims to support entrepreneurship, innovation and economic growth.

It also seeks to create a regulatory environment capable of attracting international investors and enhancing Nepal’s competitiveness in the regional capital market.

Environmental, Social and Governance (ESG) considerations have also been incorporated into the policy framework.

The policy proposes the gradual institutionalization of ESG and sustainability-related disclosures to improve transparency and align Nepal’s primary capital market with evolving international practices.

The strategic objective of the policy is to develop Nepal’s primary capital market into one of the competitive and credible capital markets in South Asia.

The policy focuses on improving transparency, governance, digitalization, investor protection, market-based pricing and access to capital while aligning the market with international standards.

The Board believes that effective implementation of the policy will help make Nepal’s primary capital market more transparent, credible, competitive, innovation-oriented, technology-friendly and aligned with international standards.

It expects the reforms to establish the primary capital market as a key foundation for mobilizing the long-term capital required to support Nepal’s economic development and prosperity.