President Sagar Dhakal of Stock Brokers Association of Nepal Calls for Capital Market Reform and Modernization

President of the Stock Brokers Association of Nepal (SBAN), Sagar Dhakal, has urged all stakeholders to come together for the strengthening, modernization, and stability of Nepal’s capital market.

Speaking at a greetings exchange program organized on the occasion of Tihar and Chhath festivals, Dhakal paid heartfelt tribute to those who lost their lives during the Gen-Z movement on Bhadra 23 and 24, announcing that one member of each martyr’s family will be offered employment opportunities within institutions affiliated with the association.

Dhakal noted that although Nepal’s capital market has completed 33 years of operation, it is still in its nascent stage of development and expansion.
He pointed out that even two decades after the enforcement of the Securities Act, 2063 (2006 A.D.), necessary policy reforms have not been made to match global advancements in technology, infrastructure, and financial instruments.

Highlighting the infrastructural challenges faced by investors, he said,

“Investors are still compelled to visit multiple offices for Demat, bank, broker, and ASBA accounts. We have not been able to fully implement systems such as video KYC and central KYC.”

Dhakal also emphasized the need to reform the rigid provisions that prevent the reuse of securities as collateral, saying that securities lending and borrowing, intraday trading, and short-selling facilities should be introduced to increase market liquidity and investor flexibility.

The SBAN president lamented that after 33 years of operation, Nepal’s stock market still trades primarily in ordinary shares, with limited instruments like non-convertible debentures and mutual funds.
He called on the Securities Board of Nepal (SEBON) to expedite the introduction of derivative products such as options and futures.

Dhakal further urged SEBON to utilize Sections 116 and 117 of the Securities Act to formulate new regulations and directives, adding,

“Without a strong legal foundation, modernization of the market is impossible. We expect the Board to take proactive steps toward regulatory development and market discipline.”

Referencing global markets, Dhakal noted that developed economies now trade in diverse assets such as index funds, foreign currencies, commodities, and digital assets.
He stressed that Nepal must also prepare to adopt such modern tools, saying,

“If Nepali investors working and living abroad could invest in Nepal’s financial markets, it would increase foreign currency inflows, create employment, and contribute to national prosperity.”

Amid the current political and economic uncertainty, Dhakal appealed to all protest groups to resolve disputes through dialogue and mutual understanding, not conflict.
He remarked,

“Nepal, the land of Gautam Buddha, stands for peace and harmony. All sides should rise above bitterness and work collectively toward stability.”

In conclusion, Dhakal extended warm greetings to all regulators, investors, brokers, and journalists on the occasion of Dashain, Tihar, Nepal Sambat, and Chhath, expressing hope that these festivals bring unity, positivity, and enthusiasm.
He concluded,

“May the coming year make our capital market stronger, more stable, and transparent. That is our shared vision.”