SEBON Plans Major Capital Market Reforms to Support Startups and Corporations

SEBON Chairman Dr. Gopal Prasad Bhat announced that SEBON is actively working to transition its financial framework from a bank dominated model to a capital market based system. Speaking on broad market reforms, Dr. Bhat emphasized that the regulator aims to restructure both primary and secondary stock markets so businesses at every stage from small startups to expanding corporate giants can directly raise funds from the market.

To improve secondary market trading, SEBON is supporting the government's plan to restructure the Nepal Stock Exchange (NEPSE). The regulator is also drafting a comprehensive new SEBON Act to submit to the Finance Ministry while strengthening its legal framework. Furthermore, SEBON plans to streamline margin trading, establish infrastructure for intraday trading and securities lending, and eventually introduce short selling by the end of the current year, alongside derivative instruments in the future.

Beyond stock trading, the regulator is finalizing revised regulations for the bond market after gathering stakeholder feedback and focusing on expanding open ended mutual funds to better protect and serve small investors. SEBON plans to enforce strict transparency and equal information sharing to curb unfair advantages, while upgrading its supervision using technology driven, risk based methods Dr. Bhat reassured the public that all new regulations will be made in close consultation with market participants rather than imposed forcefully.