The government has accelerated efforts to establish the country’s second stock exchange. According to sources, the Ministry of Finance (MoF) has authorized the Securities Board of Nepal (SEBON) to issue a license to the new entity.
An official from SEBON confirmed receiving a directive from the MoF following a Cabinet decision. The letter instructed SEBON to take the necessary steps to move forward with the initiative.
Despite initial controversies, the Cabinet granted SEBON the green light last month to issue a license for the new stock exchange. SEBON is now tasked with finalizing the framework for the platform. “The board will decide whether to award licenses based on previously submitted applications or to invite fresh ones in its meeting next week,” the source added.
SEBON first sought applications on September 18, 2022, but the process was paused due to a Supreme Court order. After the court dismissed the writ against establishing the new entity, SEBON reopened applications in April 2023. Three firms—Himalaya Stock Exchange, National Stock Exchange, and Annapurna Stock Exchange—applied for licenses.
Key investors in these companies include prominent figures such as former FNCCI presidents Pashupati Murarka, Bhawani Rana, and Shekhar Golchha for Himalaya Stock Exchange; members of Siddharth and Agni Groups, including prominent NRN leaders Upendra Mahato, Jiba Lamichhane, and Dr. Badri KC, for the National Stock Exchange; and Annapurna Media House owner Captain Rameswor Thapa for Annapurna Stock Exchange.
The licensing process faced political interference and allegations of favoritism, with delays stemming from disputes among political parties. In April 2023, then-Prime Minister Pushpa Kamal Dahal halted the process due to unfulfilled political interests. Further delays occurred as SEBON remained without a chairperson for 11 months due to disagreements between Dahal and coalition partner KP Sharma Oli. Ultimately, after a government change, Oli appointed Santosh Narayan Shrestha as SEBON chair.
Momentum for the new stock exchange picked up after the parliamentary Finance Committee approved the plan on November 9, 2024. Once operational, the new exchange will serve as an alternative to the Nepal Stock Exchange (NEPSE), which has been the sole operator since its establishment on January 13, 1994.
