SEBON and NEPSE Begin Stock Market Reform Talks, Focus on 30+ Areas of Restructuring

The Securities Board of Nepal (SEBON) and the Nepal Stock Exchange (NEPSE) have begun discussions on restructuring Nepal's stock exchange and improving the operation of the country's secondary securities market. The meeting, held at SEBON's office on Ashwin 29, 2083, focused on implementing recommendations made by the government-appointed NEPSE Restructuring Recommendation Committee, 2082. The discussion was attended by SEBON Chairman Dr. Gopal Prasad Bhatta, senior officials of the board, and members and senior management of the NEPSE Board of Directors. The meeting marked an initial step toward advancing institutional and operational reforms in Nepal's capital market. During the discussion, participants highlighted the need for comprehensive improvements in NEPSE's institutional structure, ownership model, corporate governance, technological infrastructure, human resources, operational procedures and trading systems. The reforms are intended to strengthen the stock exchange's capacity to meet the evolving needs of investors and the broader securities market. SEBON Chairman Dr. Gopal Prasad Bhatta emphasized that sufficient capital, qualified human resources and modern information technology infrastructure are essential for operating a modern stock exchange. He described the meeting as the first discussion organized under the stock exchange reform initiative. According to Bhatta, SEBON plans to move forward with reforms in more than 30 areas associated with NEPSE's capital structure and ownership, the operation and management of the secondary market, and the diversification of market instruments and services. The proposed measures are expected to address institutional challenges and support the development of a more efficient and transparent securities market. NEPSE Board Chairman and Joint Secretary at the Ministry of Finance, Narayan Prasad Rijal, described the discussion between SEBON and the NEPSE Board as a new beginning for securities market reform. He said NEPSE is prioritizing recommendations from the restructuring report that can be implemented immediately. Rijal also expressed NEPSE's commitment to improving its technological systems, institutional governance, investment instruments and services. These improvements are expected to help strengthen the exchange's operational capabilities and provide investors with a more reliable trading environment. During the meeting, SEBON Deputy Executive Director Ambika Ojha Gupta presented regulatory measures prepared by the board to facilitate implementation of the restructuring report's recommendations. Her presentation also covered measures to improve the operation and management of the secondary market and expand the range of securities market instruments and services. SEBON stated that restructuring NEPSE and improving secondary market operations are expected to broaden investment opportunities, strengthen the reliability of trading systems and enhance transparency in Nepal's capital market. The discussions signal the beginning of a broader reform process that could reshape the institutional and technological framework of Nepal's stock exchange. However, the proposed changes will depend on the implementation of the committee's recommendations and the regulatory measures adopted by the relevant authorities.