SEBON pushes securities act amendment and NEPSE restructuring for capital market reform

The Securities Board of Nepal (SEBON) has prepared drafts of two entirely new acts for capital market reform and is preparing to send them to the Ministry of Finance for approval.

SEBON chairman Dr. Gopal Bhatta shared this information at a festive greetings program organized by the Stock Broker Association of Nepal.

According to him, one draft will regulate capital market infrastructure, brokers, merchant banking, mutual funds, and the share and bond markets. The other draft, modeled on the Nepal Rastra Bank Act, is designed to strengthen the board's own regulatory role.

The board has prioritized improving NEPSE's technology and institutional structure and fully implementing margin lending.

Association chairman Sagar Dhakal said the action plan for amending the securities act and restructuring NEPSE should move forward quickly. He said NEPSE's restructuring should not be limited to privatization alone but should include a strategic partner that brings in technology.

Dhakal noted continuous dialogue with the Ministry of Finance and the board, and said positive signals have appeared in the market since the new government was formed.

Priyaraj Regmi, chairman of the Capital Market Committee of the Federation of Nepalese Chambers of Commerce and Industry, welcomed the standardization and institutional development of brokers. He said institutional reform and protecting investors' interests should be the main priorities for market development.