Opinion | Why Nepal's economic future is now tethered to the stock market
Summary
Nepal's capital market has grown to nearly 72% of GDP with broad participation, yet faces structural and regulatory challenges. Strengthening the Securities Board of Nepal's independence is crucial for stability and growth.
Key Points
- Nepal's capital market capitalization is approximately NPR 4,746 billion, equivalent to nearly 72% of the country's GDP as of May 2026.
- Market participation has expanded with about 7.9 million demat accounts, reflecting broad inclusion but lower active engagement.
- The market is structurally limited by promoter holdings, sector concentration in finance, and low institutional equity allocation.
- Strengthening the regulatory autonomy of the Securities Board of Nepal (SEBON) is critical for market confidence and sustaining long-term growth.
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