साझा अर्थ संवाददाता
३१ असार २०८३, बुधवार
Kathmandu, July 15: SEBON’s Capital Market Development Blueprint 2026 presents a ten-year plan to develop the country’s securities market into a more transparent, reliable, inclusive, technology-friendly and internationally competitive financial system. The document describes the capital market as a national mechanism for converting household, institutional and foreign savings into productive investment in industry, infrastructure, energy, agriculture, information technology and other economic sectors.
The blueprint states that Nepal’s capital market has made significant progress over the past three decades. SEBON, Nepal Stock Exchange, CDS and Clearing Limited, dematerialised accounts, Mero Share, online trading and the ASBA system have expanded market access and moved securities transactions towards a modern digital structure. However, the document says the next stage of development should focus not only on increasing market size, but also on improving the quality, depth, diversity, governance and economic contribution of the market.
According to the blueprint, the market continues to face structural constraints. These include limited financial instruments, a weak corporate-bond market, low institutional investment, the absence of significant foreign portfolio investment, insufficient private-equity and venture-capital activity, technological limitations, inadequate financial literacy, market-abuse risks and weaknesses in corporate governance.
The document therefore proposes that the coming decade should be treated as a period of capital-market transformation. It seeks to move the market from its current role as a complement to the banking system towards a broader role as strategic financial infrastructure for national economic development.
The blueprint’s national vision is to develop Nepal’s capital market into a trusted, transparent, technology-friendly, inclusive and competitive South Asian financial system. It is intended to support productive investment, infrastructure development, innovation, entrepreneurship and sustainable economic prosperity.
The document identifies five main objectives. The first is to mobilise long-term capital for hydropower, energy, infrastructure, agricultural modernisation, tourism, information technology, health, education and manufacturing. The second is to diversify Nepal’s bank-centred financial system through corporate bonds, private equity, venture capital, mutual funds, REITs, ETFs, green bonds and other alternative investment instruments.
The remaining objectives are to increase investor confidence through transparency, governance, effective regulation and investor protection; make Nepal’s market competitive with emerging South Asian markets; attract foreign institutional investors; and build a modern market using artificial intelligence, big data, blockchain, cloud computing, digital settlement and cybersecurity.
The blueprint organises the proposed transformation around seven strategic pillars.
The first pillar is a strong legal and regulatory framework. It proposes extensive revision of securities laws and regulations, increased institutional autonomy for SEBON, improvements in primary and secondary markets, risk-based supervision, stronger enforcement and market surveillance, and a zero-tolerance approach to insider trading and market manipulation.
The second pillar is market deepening and diversification. The blueprint proposes the development of a corporate-bond market, green and municipal bonds, ETFs, REITs, InvITs, alternative investment funds, derivatives and a commodity exchange. These instruments are intended to expand long-term financing and strengthen risk-management mechanisms.
The third pillar is the strengthening of institutional investors. The blueprint identifies the Employees Provident Fund, Citizen Investment Trust, Social Security Fund, insurance companies, mutual funds and pension funds as institutions that should be enabled to invest in a wider range of asset classes.
The fourth pillar is a technology-driven capital market. The proposed measures include AI-based market surveillance, blockchain-based settlement, an API-based capital-market ecosystem, T+1 settlement and eventually T+0 settlement, a cybersecurity operation centre, digital KYC and a fully paperless market.
The fifth pillar covers investor protection and financial literacy. It includes a National Investor Education Mission, financial-literacy programmes in schools and universities, a digital learning platform, an Investor Protection Fund, whistleblower protection and a financial-consumer-protection framework.
The sixth pillar is internationalisation and foreign investment. The blueprint proposes a framework for non-resident Nepalis and qualified foreign institutional investors, international custodial services, cross-border collaboration, regional capital-market integration, depository receipts and phased access for foreign portfolio investment.
The seventh pillar covers innovation, SME financing and sustainable finance. It proposes an SME exchange, a start-up board, private-equity and venture-capital development, a green-finance framework, ESG-based investment, climate finance and an innovation fund.
The blueprint proposes a broad review of Nepal’s existing securities legislation. It calls for legal recognition of ETFs, REITs, InvITs, derivatives, commodity securities, digital securities, tokenised assets and alternative investment funds. It also proposes legal provisions for securities lending and borrowing, intraday trading, short selling, investment advisers, research analysts, margin trading, market makers, crowdfunding and FinTech-based capital raising.
Existing regulations governing listings, public issues, merchant bankers, mutual funds, credit-rating agencies, portfolio management and corporate governance are also proposed for revision in line with international standards.
For SEBON, the blueprint proposes greater financial, administrative and operational autonomy, adequate financial resources, specialist recruitment, an internal research and policy-analysis unit, technology-based working systems and a modern enforcement structure.
It also proposes the establishment of a capital-market research and policy institute to conduct market research, risk analysis, economic-impact assessment, policy studies, international benchmarking and feasibility studies for new financial instruments. A separate market-intelligence and investigation function is proposed for digital forensics, financial-crime investigation and cross-border regulatory cooperation.
The regulatory system is intended to move from primarily compliance-based supervision towards risk-based supervision using risk ratings, early-warning systems, stress testing, data analytics and real-time monitoring. The blueprint also proposes AI- and big-data-based surveillance to identify unusual trading patterns, insider trading, misleading disclosures, fraudulent transactions and price manipulation.
The blueprint describes the future capital market as data-driven. It proposes a capital-market data warehouse, open-data standards, a data-privacy framework, data-sharing protocols and a market-analytics dashboard.
It also proposes a Capital Market Innovation Hub involving SEBON, NEPSE, universities and the private sector. The hub would support FinTech innovation, RegTech solutions, AI applications, blockchain pilot projects, start-up collaboration and academic research.
Cybersecurity measures include a capital-market cybersecurity centre, regular cyber audits, disaster-recovery arrangements, implementation of international security standards and cybersecurity awareness for employees and investors.
The blueprint sets several national targets. It proposes increasing market capitalisation from approximately 70–80 per cent of GDP in 2026 to more than 150 per cent by 2036. The number of listed companies is targeted to rise from around 300 to more than 500, while daily turnover is expected to increase from approximately Rs8 billion to Rs30 billion.
Demat accounts are targeted to exceed 12 million. Institutional investment is expected to account for more than 40 per cent of total market transactions, while the corporate-bond market is targeted to reach 20 per cent of the total capital market. The blueprint also proposes more than 150 mutual-fund schemes, more than 200 SME listings, regular green-bond issuance and phased institutional foreign portfolio participation.
A later KPI framework sets additional targets, including mutual-fund assets equivalent to 10 per cent of GDP and green finance representing 15 per cent of total issuance.
The ten-year roadmap is divided into three phases.
The first phase, covering 2026–27, focuses on legal, institutional and regulatory reform. The blueprint proposes amendments to securities legislation, institutional strengthening of SEBON, corporate-governance reform, the initial use of AI-based surveillance, preparation of a corporate-bond framework, investor education, preparations for an SME exchange, access for non-resident Nepalis and green-bond guidelines.
The second phase, covering 2028–30, focuses on market expansion, financial-instrument diversification and digital transformation. It includes operation of the corporate-bond market, introduction of ETFs and REITs, reform of the alternative-investment-fund framework, development of a foreign institutional-investor framework, establishment of a capital-market research institute, operation of a cybersecurity centre and full implementation of a digital capital-market platform.
During this period, the blueprint also proposes regular corporate- and green-bond issuance, municipal bonds, InvITs, an SME exchange, a start-up board, private-equity and venture-capital frameworks, qualified foreign institutional investors, international custodial banking and an API-based, paperless investment ecosystem.
The third phase, covering 2031–36, focuses on internationalisation, regional integration and the development of a globally competitive capital market. It includes derivatives, a commodity exchange, regional market connectivity, blockchain settlement, international capital-market integration and possible tokenised securities following the required legal preparation.
The derivatives proposed for the final phase include NEPSE index futures, stock futures, stock options, interest-rate futures and currency derivatives developed in coordination with Nepal Rastra Bank. The blueprint also proposes the necessary central counterparty, clearing, risk-management and market-making arrangements.
The blueprint proposes a Capital Market Reform Implementation Unit to coordinate programmes, monitor implementation, prepare progress reports, manage technical assistance and work with development partners.
Institutional responsibilities are assigned to the Ministry of Finance, SEBON, NEPSE, CDSC, Nepal Rastra Bank, the insurance regulator, the Office of the Company Registrar and professional accounting institutions.
The document proposes annual progress reports, KPI evaluations, implementation reviews and revised annual action plans. It also calls for a mid-term review every five years, including international benchmarking and possible policy amendments.
By 2036, the blueprint seeks to establish a capital market that is transparent, accountable, digital, investor-friendly, secure, supported by multiple financial instruments, based on institutional investment, aligned with international standards and connected to ESG and sustainable finance. It is intended to support private-sector development and serve as financial infrastructure for national economic transformation.
