The Securities Board of Nepal (SEBON) has endorsed a nine-point work plan to implement the recommendations proposed by a government-formed panel aimed at revitalizing and strengthening the country’s secondary securities market.
According to SEBON, all provisions under the plan are scheduled for implementation by the end of November, with several measures taking effect sooner. Among the immediate reforms, investors will be permitted to open more than two demat accounts by the end of October. Additionally, margin trading through stock brokerage firms is expected to commence by mid-November, broadening investment access and liquidity in the market.
Background: Post–Market Crash Reforms
The move comes in response to the stock market crash that followed the Gen Z movement of September 8–9, which severely disrupted investor confidence. In the aftermath, Finance Minister Rameshore Khanal formed a four-member task force to recommend systemic and procedural reforms. The panel was chaired by Rupesh KC, Acting Executive Director of SEBON.
The task force submitted over three dozen reform measures — divided into 15 short-term, 15 medium-term, and 7 long-term recommendations. Key proposals include:
- Removing the threshold on loans against shares,
- Extending deadlines for interest payments on margin loans, and
- Reviewing existing capital gains tax provisions to make the market more investor-friendly.
Implementation Drive
Last week, the Ministry of Finance (MoF) instructed relevant government agencies to implement the task force’s recommendations without delay. SEBON’s nine-point action plan represents the first concrete step toward that directive, focusing on improving regulatory efficiency, expanding investor participation, and restoring confidence in Nepal’s capital market.
With these reforms underway, SEBON aims to stabilize market operations, enhance transparency, and build a more resilient securities ecosystem that can better withstand future shocks.
