SEBON to publish capital market roadmap next week

Kathmandu, July 10

The Securities Board of Nepal (SEBON) has said that it is preparing a detailed capital market development roadmap to address the issues observed in the market and to protect investors' interests.

It said in a statement that it has been working seriously on the matter and will publish the roadmap within the coming week. The roadmap will include a time-bound action plan, and the SEBON will proceed with its implementation accordingly.

"The Board has taken serious note of the problems currently seen in Nepal's securities market and the complaints raised by investors," it said while adding that it has instructed licensed securities professionals and other related institutions to complete the tasks and actions for effective implementation of margin trading and other market-related matters as directed by the Board.

According to the SEBON, work has begun on a review of the existing securities-related laws, the Securities Registration and Issue Regulations and other regulations, as well as the corporate governance directives applicable to listed organised institutions and other legal arrangements.

"The review is being done to create a healthier, safer and more effective capital market environment and to further streamline the public issuance process and regulatory framework for securities," read the statement.

While the Board said that it has been working while giving high priority to the protection of investors' interests, it has received criticism from public and investors for not being sensitive to the share investors. Writing on the SEBON's Facebook wall, they urged it to work to boost the morale of the investors. 

Published in The Rising Nepal daily on 11 July 2026.        

Margin trading policy on anvil

Kathmandu, Sept. 16

The Securities Board of Nepal (SEBON) has said that the preparations for bringing a policy related to margin trading has reached the final stage.

Speaking at an interaction programme organised by the Nepal Association of Financial Journalists (NAFIJ), Chairman of the Board Ramesh Kumar Hamal said that a policy on margin trading will be announced in a few weeks. "The SEBON is set to announce a new policy on margin trading in a few weeks, the policy regarding margin trading that will flow through the broker will be implemented."

He also said that the Board will set separate qualifications for independent directors in hydropower and real sector companies.

Chairman Hamal said that the roster of independent directors will be prepared by the SEBON. "We are determining the qualifications of independent directors in hydropower and real sector companies, we are making a roster. We are making arrangement for the independent directors to submit the report to the independent auditor," he stated. He also said that the matter has been discussed with the Independent Power Producers Association of Nepal (IPPAN) as well.

He informed that 'intra-day trading' will also be implemented at the Nepal Stock Exchange (NEPSE). According to him, SEBON team has the courage and expertise to reform the securities market. Since the economic indicators are in course of improving, the investors should be confident to make investment, he said.

He also made it clear that he will not decide to reduce the commission of the brokers without adding more service to their business. "If brokers' commission is slashed, fee for SEBON would be reduced first. We are not in favour of reducing the commission so that the broker is not sustainable," said Hamal. He also maintained that the policy of distributing 10-unit shares to all possible applicants of the initial public offerings would be revised.

Likewise, Executive Director of the SEBON, Muktinath Shrestha, pointed out that NEPSE index and market capitalisation should be made scientific in a timely manner. He also asked the brokers to submit the proposals for commission and required facilities.

Chairman of Stock Brokers Association of Nepal Dharma Raj Sapkota said that policy support is needed for the recovery in margin trading. Similarly, he said that stability should be maintained in the market by bringing tools like auction market and settlement guarantee fund.

According to him, supply pressure will increase as soon as the lock-in period ends in real sector companies, including Hydropower.

Krishna Giri, Secretary General of Securities Brokers Association, said that the lock-in data of listed companies should be available at the NEPSE. He said that the instruments like treasury bills of the monetary market should be available in the securities market.

Likewise, Ambika Prasad Poudel, executive member of the Federation of Nepalese Chambers of Commerce and Industry and share investor, said that due to the 10-unit share policy of the IPO, number of investors has reached 2.7 million and those who want to go for book building system are now moving towards the premium share price.

Poudel said that the limit of Rs. 120 million is enough for the margin nature of share mortgage loan, but this ceiling is not appropriate for companies that have come to invest in the stock market. 

 Published in The Rising Nepal daily on 17 September 2023. 

FM Dr. Mahat wants share market to benefit all investors

 Lalitpur, June 8

Minister for Finance, Dr. Prakash Sharan Mahat, has said that the stock market should not be used as a means of benefiting certain people.

Speaking at the 31^st Anniversary Programme of the Securities Board of Nepal (SEBON) in Lalitpur on Thursday, he said, "The biggest responsibility of the board is to protect those who have invested in the stock market to see if there will be more benefits or if something positive will happen tomorrow."

Stating that provisions announced in the budget of the next Fiscal Year 2023/24 were not aimed at bringing the ordinary investors under the income tax, FM Dr. Mahat said that the rumour that spread in the stock market that all 5.6 million investors would come under the net of income tax was wrong.

According to him, the stock market has a great attraction for the common people as a means of investment and income generation. Therefore, the responsibility and liability of the board has been increased since it has to protect the interest of 5.6 million investors.

Pointing out the need for the SEBON to carry out the work of regulation with utmost importance, Dr. Mahat expressed his commitment to leave no stone unturned to make the stock market cleaner, broader and ensure the safety of investors.

He also said that the stock market should be made competitive, and the SEBON should adopt an automated system and make sure that no one gets unexpected benefits.

Speaking on the occasion, Chairman of the SEBON, Ramesh Kumar Hamal, expected favourable cooperation from FM Dr. Mahat as the capital market regulator was undertaking multiple reforms and taking various initiatives to develop the market in the near future.

"The Board has reduced the CASBA fee by half. Broker's license has been issued to all eligible candidates without setting any quota and number of brokers will reach 93 within next two months," he said.

According to him, a complete ecosystem would be created by including the bank's sister organizations in venture capital and private equity sector.

 Likewise, the SEBON is making preparations to operate the commodity market from the coming fiscal year 2023/24.

On the occasion, the Board awarded journalists Lok Bahadur Chapagain and Ambika Sharma with Capital Market Journalism Award. Both of them received Rs. 50,000 each. Finance Minister Dr. Mahat felicitated them with certificates and shawls. 

 Published in The Rising Nepal daily on 9 June 2023. 

Dr. Mahat for all party consensus on liberal economic policy

Kathmandu, Oct 1

Former Finance Minister and Nepali Congress leader Dr. Ram Sharan Mahat said on Friday that an all-party consensus on liberal economic policy and good governance could pave way for high trajectory of growth in Nepal.

“The country should also enhance its programme and policy implementation capacity,” he said while speaking at a programme organised to launch a book – Nepalko Arthatantraka Aayamharu – written by Dr. Rewat Bahadur Karki, former chairman of the Securities Board of Nepal (SEBON).

He maintained that liberal economic policies adopted by the country after the restoration of democracy in 1990 helped reduce poverty significantly.

“About half of the population – 49 per cent – was living in poverty during the Panchayat era but it has now come down to 17 per cent,” he said.

He stated that democracy promoted private sector and cooperatives which contributed to higher investment, job creation and economic growth.

Dr. Mahat said that Nepali economy needs yet another reform to create environment for more investment, employment and support livelihood activities.

“The country must encourage private sector investment which will increase the income of the government which then can mobilise resources in the development and poverty alleviation,” he said.

He defended the privatisation drive initiated by the Nepali Congress government after the restoration of democracy in 1990. According to him, income of government run industries was small and many were sick so privatisation was needed.

Even the communist government in China has opened the economy for private sector investment. It has contributed to the increment of the per capita income of the people and revenue of the government and supported in poverty reduction.

He suggested that the government should increase investment to raise the living standards of the grass root level.

Economist Professor Dr. Bishwambhar Pyakurel said that the book has minutely presented Nepal’s economic condition as a landlocked country and changes in the economic and governance policies.

Dr. Karki said that he had expressed his knowledge and understanding that he acquired in the past four decades in various national and international economic, capital market and monetary organistaions.

The book discusses about four major sectors of the economy: real sector, public finance, fiscal sector and international trade and payment.

  Published in The Rising Nepal daily on 2 October 2021. 

SEBON implements risk-based supervision manual

Kathmandu, Sept. 30

 The Securities Board of Nepal (SEBON) has announced implementation of the Money Laundering related Risk-based Supervision Manual for Securities Brokers, 2020 from Thursday.

The new manual is prepared according to the guidelines of the Anti-Money Laundering Act, 2008, Anti-Money Laundering Bylaws, 2016, and Guidelines on Prevention of Money Laundering and Terrorism Financing, 2019 issued by the SEBON.

The capital market regulator said that the manual was based on the risks of the brokers and included field and indirect supervision of them. It is prepared as per the anti-money laundering and terrorism financing standards set by the Financial Action Task Force (FATF) and Asian Pacific Group (APG).

Risks of the brokers will be evaluated on the basis of their services, customers, geographical coverage, distribution, structure and people of high posts.

Published in The Rising Nepal daily on 1 October 2020. 

SEBON sets standards for merchant bankers

Kathmandu, Sept. 10

The Securities Board of Nepal (SEBON) has set the standards of office, human resources, instruments and policies for the merchant bankers.

According to its instructions issued on Thursday, the merchant bankers should have their offices in at least 1,000 square feet area with separate spaces for guests and waiting room, service area, store, information technoogy and other units. They have to manage the space for at least two years and manage information technology equipments and services.

The Chief Executive Officer of any merchant banker must have  at least bachelors degree in economics, commerce, finance, accountancy, management or commercial law or have the title of chartered accountant.

He or she should have three years experience in the areas like industry, commerce, securities market, accountancy, management or commercial law.

Likewise, the securities business consultant or the department head should have the qualification of masters degree in commerce, economics and management or law or be a chartered accountant or financial analyst.

If the CEO has these qualificaitns then the company is not obliged to have the consultant.

The capital market regulator has also directed the merchant bankers to formulate various policies, bylaws and work procedures as well as code conduct for the CEO and other staff to run the business.

Published in The Rising Nepal daily on 11 September 2020. 

SEBON amends mutual fund bylaws

Kathmandu, Sept. 9

The Securities Board of Nepal (SEBON) has brought the amended Mutual Fund Bylaws 2020 into application from Wednesday.

It has an amended provision to record the exit fee charged while the fund manager repurchases the open-ended mutual fund units under the fund's income.

Earlier such income was recorded by the managers.

The SEBON believes that the new provision will strengthen the investors’ fund and will help in getting higher income.

Likewise, it has revised the provision to get approval from the board while appointing the fund manager and auditor of the mutual fund and allowed to appoint them by just informing the capital market regulator.

Issuing a statement on Wednesday, the SEBON said that the new provision would help to increase the income of the mutual funds.

Published in The Rising Nepal daily on 10 September 2020. 

SEBON trade union announces essay competition

Kathmandu, Sept. 3

Trade Union of the Securities Board of Nepal (SEBON) has announced a national essay competition on the occasion of World Investors’ Week 2020.

The competition is opened for the students of the masters and M.Phil levels who can write the essay on six different topics.

Essays can be written on the role of capital market in the rapid development of country, women empowerment through capital market, financial literacy and capital market, capital market, service delivery and corporate governance, information technology for efficient capital market, and COVID-19 and way forward of capital market.

The participants can write the essay in English or Nepali language in about 4,000 words.

According to the union, the best essays would be published in a book. The best essays would be awarded with certificates and the purse of Rs. 20,000, Rs. 15,000 and 10,000 respectively. Likewise, other three participants will receive Rs. 5,000 each in cash.

Published in The Rising Nepal daily on 4 September 2020. 

Share market in process of full automation

Kathmandu, Apr 29

The Securities Board of Nepal (SEBON) has initiated the work to make the share transaction fully automated.

Currently, the Nepal Stock Exchange (NEPSE) – the only share market platform in the country – has implemented partial automation in share transaction.

"The board has started to make the market fully automated. We hope that the new system will come into operation after a couple of months after the lifting of the lockdown," said SEBON Chair Bhisma Raj Dhungana in a video conference organised by Nepal Financial Journalist Association on Tuesday.

He said that the capital market regulator and NEPSE had allocated dedicated teams to develop and implement the new and advanced system.

He said that the market would not resume soon since about 400 individuals needed to be present in various agencies and brokers. "It will disturb the lockdown which is necessary to save the lives in the time of crisis. However, we will try to find a way out once the lockdown is relaxed," he said.

According to Dhungana, the board has directed NEPSE to develop a modality to run the share market for a brief period every day.

Chief Executive Officer of NEPSE Chandra Singh Saud said that the stock market was likely to open for a couple of hours every day from May 7.

"I think we should open the stock market for a brief period each day. But we are yet to decide about the modality to open the market. Preparations are underway," he said.

We need business continuity plan, disaster recovery plan and information technology policy to resume market operation so we have recently approved the IT Policy and send it to the SEBON, said Saud.

He lamented that investors were not attracted to the online share transaction system although the currently implemented system was capable of addressing the need of the market.

Before the lockdown, about 45 per cent of the share transactions used to happen from the online system.

Share investor Ambika Prasad Poudel suggested that the market should be open at least partially to keep it alive.

"Since the period of lockdown is unknown, the market should be opened partially. It should be opened limiting the time and ceiling for circuit breaker," he said.

It would be 45 days of the market closure by May 7.

According to him, the prolonged market closure would send negative message to the investors as well as the foreign and non-residential Nepali investors.

He urged the regulator to open the market by allocating hours for the brokerage firms.

Published in The Rising Nepal daily on 30 April 2020. 

Capital Market is more inclusive and transparent now: Dr. Karki

Kathmandu, Sept. 29

Chairman of the Securities Board of Nepal (SEBON) Dr. Rewat Bahadur Karki has said that he was satisfied with his performance as the chief of the capital market regulator in the country because of his success in transforming the primary market and making the market more inclusive and transparent.

Dr. Karki is retiring from the chair of the SEBON after a month.

“The board has been successful in making Nepali capital market as one of the most transparent markets in South Asia,” he said at an interaction with journalists on Sunday. “With the policy of allotting minimum 10 units of share in the Initial Public Offering (IPO) and information technology enabled application and trading service, it has been more inclusive as well.”

He reduced the minimum number of units needed to apply to 10 from the existing 50 and take the entire IPO system to online which facilitated the people from lower class as well as far flung areas in the country to buy share.

People had to stand in a queue all day long to fill up the form and apply for the IPO and the forms used to be collected in sacks in the past. “People had to stand in the queue even to claim their money, bonus and right shares. About four months would take to clear the transaction and ownership transfer,” he said.

In Dr. Karki’s leadership, the SEBON implemented mandatory DMAT account policy and ASBA system which facilitated the investors to apply from any locations and end the problem of holding money for a long period and losing interest of the applied money.

It barred the companies to announce FPO (Further Public Offering) for the next five years of the first offering and allowed the foreign financial institutions to issue bonds in local currency.

In the secondary market, SEBON made provision of clearing within three days, allowed the investors to observe market depth, added three clearing banks, expanded the secondary market and allowed the investors to involve in the auction of the unsold right shares from outside the Kathmandu Valley.

“SEBON has increased the service areas of merchant bankers along with their capital increment and allowed the share brokers to conduct margin transaction,” said Dr. Karki.

The SEBON became the member of the International Organisation of Securities Commissions (IOSCO) and International Network on Financial Education of the Organisation for Economic Cooperation and Development (OECD/INFE) and organised the first international conference on financial literacy in collaboration with the latter.

According to Dr. Karki, programmes like awarding the broker license to the subsidiary companies of the banks, establishing provincial offices of the SEBON, establishing two commodity exchanges, formulating Securities Act, and amending securities related rules and bylaws are in the pipeline.

Published in The Rising Nepal Daily on 30 September 2019. 

SEBON to organise consumer protection conference

Kathmandu, June 30

The Securities Board of Nepal (SEBON) is organising a OECD-SEBON conference and roundtable on financial consumer protection and education in Asia Pacific on July 2 and 3.

SEBON is organising the two-day international conference for the first time in Nepal in collaboration with the International Network on Financial Education (INFE), an agency of the Organisation for Economic Cooperation and Development (OECD).

Finance Minister Dr. Yuba Raj Khatiwada will inaugurate the conference which will be attended by more than 125 experts and regulator around the world.

“Experts from the countries like the United States of America, South Africa, Australia, Kajakistan, Singapore, Thailand, China, Bhutan and India, representatives from the OECD, Securities Board of India (SEBI), Australian Securities and Investment Commission, Centre for Financial Literacy Singapore and financial sector regulators from the east Asian and South Asian countries, and regional organisations will take part in the event,” said Dr. Rewat Bahadur Karki, Chairman of the board.

Similarly, Nepali representatives from the Ministry of Finance, Nepal Rastra Bank, Insurance Board, Company Registrar’s Office, Nepal Stock Exchange, participants of the securities market, Nepal Bankers’ Association and investors’ forums will attend the conference.

The conference will deliberate on financial education, inclusion and financial consumer protection in financial markets in Nepal and across the region, reducing financial vulnerabilities from childhood and supporting and promoting financial inclusion for ageing population.

Likewise, there will also be discussions on understanding the different needs of rural, remote and urban populations and access to finance and financial education for the small and medium enterprises.

SEBON said that the conference and roundtable will be a platform to share and exchange experiences, strategies, technology and challenges faced by the financial sectors.

“We can discuss the challenges of financial literacy in Nepal and identify opportunities and ways to address them. It will increase the exposure of Nepal and may help to boost the inflow of foreign investment as the event is being organised in the immediate aftermath of the Nepal Investment Summit,” said Dr. Karki.

According to him, it will send positive message to the international financial community and will also help Nepal in devising effective strategies for the regulation of the markets and increase financial literacy.

SEBON had become the member of INFE from January this year. It is also the member of the International Organisation of Securities Commissions (IOSCO).

Published in The Rising Nepal daily on 1 July 2019.