SEBON Issues Broad Directives to Strengthen Nepal’s Capital Market
Summary
SEBON has issued broad directives to modernize Nepal’s capital market, including IT audits for NEPSE, new disclosure rules for brokers and listed companies, and stronger investor-protection measures. The board has also ordered steps to improve trading systems, settlement processes and financial literacy programs.
Key Points
- SEBON has issued a series of directives to strengthen transparency, reliability and regulation in Nepal’s capital market.
- NEPSE has been told to conduct an IT audit, improve its online trading systems and suspend AI-based order entry until international practices are studied.
- Brokers must keep client funds separate from their own, create grievance units and ensure T+2 settlement compliance.
- Listed companies, merchant bankers and mutual fund managers face new disclosure and compliance requirements, including advance notice for major share sales.
