SEBON Plans Major Capital Market Reforms to Support Startups and Corporations
Summary
SEBON is working to shift Nepal’s financial system from a bank-dominated model toward a capital market-based system, with reforms aimed at helping startups and large companies raise funds directly from the market. The regulator also plans changes to NEPSE, margin trading, securities lending, short selling, bond rules and mutual funds.
Key Points
- SEBON is planning broad capital market reforms to move Nepal from a bank-dominated financial model to a market-based system.
- The regulator wants to restructure primary and secondary stock markets so startups and larger companies can raise funds more easily.
- SEBON is supporting the government’s plan to restructure NEPSE and is drafting a new SEBON Act for the Finance Ministry.
- It also plans reforms to margin trading, intraday trading, securities lending, short selling, bond regulations and mutual funds.
