SEBON Chief Pledges Market Reforms, Short Selling and New Securities Act Amid NEPSE Decline

The Securities Board of Nepal (SEBON) has pledged to take concrete measures to address long-standing issues in the country’s stock market amid a sustained decline in the NEPSE index. During a meeting with a delegation from the Nepal Share Market Investors Association on Monday, SEBON Chairman Dr. Gopal Bhatt said protecting investors’ interests and ensuring market transparency would remain his key priorities. He also stated that if delays in introducing a new Securities Act continue, he is prepared to pursue an ordinance-based solution to address existing legal complications. The investor delegation, led by Association Vice President Bhagwan Bahadur Rawat, raised concerns over the sluggish economy, weak investment in productive sectors despite sufficient banking liquidity, and growing risks faced by small investors due to market volatility and rumors. Investors also questioned the regulator’s response to insider trading, artificial price manipulation and misinformation circulating through social media. In response, Chairman Bhatt said SEBON had already begun working on these issues and would intensify investor awareness programs. He further pledged to move ahead with the implementation of short selling and intraday trading, saying preparations were progressing rapidly and investors would be able to access these facilities soon. The board also plans to strengthen its internal infrastructure and institutional capacity to modernize the capital market. Meanwhile, the investors’ association urged SEBON to move beyond assurances and adopt stronger enforcement measures, while demanding clear timelines for implementing the reforms outlined in its white paper. The association also called for stronger provisions to establish individual accountability for officials making irresponsible decisions, investor representation in SEBON committees, and greater clarity over the implementation of T+1 and T+2 settlement systems. The delegation warned that failure to protect the savings of ordinary investors could erode confidence in the capital market and raise broader concerns over governance and financial stability.