Finance Minister Wagle Directs SEBON to Strengthen Regulatory Quality and Accelerate Capital Market Development

Finance Minister Dr Swarnim Wagle visited the office of the Securities Board of Nepal (SEBON) on Monday and guided the development and expansion of the country’s capital market.

The programme held on the occasion of the minister’s visit was attended by Finance Secretary Dr Ghanshyam Upadhyaya, senior officials from the Ministry of Finance, members of the SEBON Board of Directors and senior officials of the securities regulator.

SEBON Chairman Dr Gopal Prasad Bhatta welcomed Finance Minister Wagle and other distinguished guests on behalf of the Board. During the programme, Chairman Bhatta briefed the minister on the initiatives undertaken by SEBON to promote the development and expansion of Nepal’s capital market.

Chairman Bhatta informed the minister that SEBON has prepared and begun implementing a Capital Market Development Blueprint as its overall vision for the development of the capital market. He also stated that the Board has initiated the implementation of the capital market policy and action plan for the fiscal year 2083/84.

According to Bhatta, SEBON is preparing consultative papers, rules and directives related to various primary and secondary market instruments and activities outlined in the current fiscal year’s policy and programme. These include initial public offerings (IPOs), intraday trading, margin lending and short selling, among other areas.

The Board plans to prepare the necessary consultative papers, rules and directives by the month of Shrawan 2083. Following the collection of suggestions and feedback, consultations with stakeholders are expected to begin from Bhadra 2083. The policies, rules and directives will then be reviewed and amended as necessary based on stakeholder feedback.

During the programme, the SEBON chairman also briefed the finance minister on the existing challenges and problems facing Nepal’s capital market. He requested the Ministry of Finance to facilitate the Board in addressing those challenges and provide necessary support for effective policy formulation and implementation.

Bhatta also stressed the need to effectively implement policy programmes to enhance the motivation of SEBON employees and strengthen the institutional capacity of the regulator.

Addressing the programme, Finance Minister Wagle directed SEBON to advance capital market development by improving regulatory quality and maintaining high ethical standards.

He said the appointment of new leadership at SEBON and the Board’s decision to move forward with a long-term strategy had sent a positive message to the market. According to him, efforts to accelerate capital market development have also generated positive expectations among investors.

Minister Wagle stressed that SEBON should develop into a strong regulator with a stature comparable to the role played by Nepal Rastra Bank in the country’s financial system.

He also urged the Board to develop itself as a robust and credible regulator without deviating from its core responsibilities. With the rapid growth of dematerialised (demat) accounts in Nepal, investor expectations have increased significantly, and the minister called for institutional development and regulatory capacity-building to match those expectations.

The finance minister further emphasised the importance of adopting a political-economy perspective while formulating capital market policies. He said that policies should be developed after adequate consultation and discussion with all concerned stakeholders to ensure the sustainable development of the capital market.

Minister Wagle said the changes in SEBON’s working approach under the new government and new leadership had conveyed a positive message to investors. He assured that the Government of Nepal would provide all necessary facilitation and support for regulatory and legal reforms aimed at strengthening the capital market.

The minister’s visit and directives come at a time when SEBON has announced plans to introduce and reform several capital market instruments and regulatory frameworks, intending to strengthen market infrastructure, expand investment opportunities, and improve the overall efficiency and credibility of Nepal’s capital market.