SEBON Plans Major Overhaul of Nepal’s Capital Market, Price Discovery Mechanism in Pipeline
Mon, Sep 7, 2026 4:23 PM on Highlight News, Economy, Stock Market, National,
The Securities Board of Nepal (SEBON) Chairman Dr. Gopal Prasad Bhatta has said the regulator is preparing major reforms to modernize and expand Nepal’s capital market, including the development of a genuine price discovery mechanism in the primary market.
Speaking at the Nepal Capital Market Discourse 2026, Bhatta said several new initiatives could be introduced in the capital market within the next year.
Bhatta said Nepal’s primary market still lacks an effective mechanism for determining the fair value of securities. SEBON is therefore working to develop qualified institutional investors capable of helping determine appropriate prices for shares, bonds and other securities.
He said the capital market should not remain focused only on secondary-market share trading. The bond and debt securities market must also be expanded so businesses can raise capital directly from the market rather than relying entirely on banks.
SEBON is also planning to create opportunities for startups and small and medium-sized enterprises (SMEs) to raise funds through the capital market.
According to Bhatta, smaller companies could be brought to the market through a separate platform and later shifted to the main board as they grow and meet the required criteria.
Bhatta said SEBON is moving toward risk-based and technology-driven regulation and supervision to strengthen market discipline, improve efficiency and reduce administrative delays.
He also said the government is being consulted on amendments to the Securities Act and the development of a new legal framework for the capital market.
Bhatta emphasized that the overall objective is to transform Nepal’s capital market into a diversified and modern system where businesses at different stages can raise capital and investors can choose instruments according to their risk capacity.
He added that many new initiatives are expected to be visible in Nepal’s capital market within the coming year, marking a broader shift beyond traditional share trading.
