The Securities Board of Nepal (SEBON) has announced that it is preparing a comprehensive reform roadmap aimed at addressing persistent challenges in Nepal’s capital market and safeguarding investors’ interests amid continued market volatility.
According to the market regulator, a detailed, time-bound action plan for capital market development has been finalized and will be made public next week, with immediate implementation to follow. SEBON officials say the roadmap is designed to improve market transparency, strengthen regulatory oversight, and restore investor confidence.
SEBON spokesperson Niranjay Ghimire said the board is fully aware of the concerns surrounding the country’s secondary market and is committed to introducing practical reforms to ensure a healthier and more efficient investment environment.
The announcement comes as Nepal’s stock market has remained under sustained pressure in recent weeks. The benchmark Nepal Stock Exchange (NEPSE) index has declined by nearly 200 points over the past month, falling from around 2,800 points to nearly 2,600 points, reflecting weak investor sentiment and declining market activity.
To improve market operations, SEBON said all licensed securities brokers, dealers, and other market participants will be required to comply with regulatory directives within specified deadlines. Among the priorities is the effective implementation of margin trading, which the regulator believes will help modernize trading practices and improve market efficiency.
In addition to operational reforms, SEBON has initiated a comprehensive review of the existing Securities Act, Securities Registration and Issuance Regulations, and other related legal frameworks. The review also includes revisions to the Guidelines on Institutional Governance of Listed Companies, with the objective of simplifying public share issuance procedures and strengthening corporate governance standards.
The regulator believes these legal and institutional reforms will create a safer, more transparent, and investor-friendly capital market while improving regulatory effectiveness.
SEBON also appealed to investors to exercise caution while making investment decisions. The board urged the public not to rely on rumors, misinformation, or speculative market narratives, but instead to invest based on independent research, financial analysis, and their own risk tolerance.
The regulator expressed confidence that the upcoming reform package will contribute to long-term stability, improve market governance, and support the sustainable development of Nepal’s capital market.
