Investor Groups Push SEBON for Six Key Capital Market Reforms
Three investor associations have submitted a six-point reform proposal to SEBON, seeking changes to share trading, IPO and promoter share structures, margin trading, settlement and investor protection.
The Nepal Investors Forum, Nepal Capital Market Investors Association and Share Investors Association Nepal have jointly urged the Securities Board of Nepal (SEBON) to introduce immediate policy reforms to make the capital market more transparent, competitive and investor-friendly. They have called for a review of the 15-day advance notice rule for selling shares bought in the secondary market, proposing that ordinary investors be allowed to sell their shares freely while large promoter transactions could remain subject to advance notice. The associations have also proposed reviewing the IPO and promoter share structure, maintaining at least 30% public ownership and gradually making eligible promoter shares tradable. They have sought consistent bonus and rights share price adjustments between NEPSE and CDSC, common risk-based standards for margin trading, and a gradual shift from the existing T+2/T+3 settlement system toward T+1 or shorter settlement. They have also called for broader regulatory reforms based on consultation with SEBON, NEPSE, CDSC, NRB, brokers, listed companies and investor representatives.