Securities Board of Nepal Unveils Capital Market Reform Action Plan — Major Reforms to Be Implemented by Mid-Mangsir 2082

The Securities Board of Nepal (SEBON) has prepared and published a detailed implementation action plan based on the recommendations provided by the Capital Market Reform Taskforce. The plan was made public after investors surrounded the board on Sunday, demanding immediate reforms.

This action plan prioritizes nine key initiatives aimed at enhancing transparency, stability, and investor protection within Nepal’s capital market.

The first priority of SEBON is to implement the margin trading system through brokerage firms. A study committee has already been formed, and the system is expected to be implemented by mid-November (end of Kartik).

The second task is to standardize the criteria for distributing ISINs by CDS and Clearing Limited, which will also be completed by the end of Kartik.

The third measure requires listed companies to reconcile and pay dividend taxes themselves when distributing bonus shares — to be implemented immediately.

Fourth, the board will establish uniform rules for delayed payments between brokers and investors, ensuring that interest compensation is paid in case of delays. The benchmark study will be completed by Mangsir 15.

Fifth, investors will be allowed to open more than one beneficiary account (demat account) — to be implemented by Kartik 15.

Sixth, Nepal Stock Exchange (NEPSE) will be directed to make company classification more objective and to require 100% cash margin for trading companies in the “Z” group.

Seventh, SEBON will establish a grievance redress mechanism for investors and enhance investor education and awareness programs.

Eighth, the board plans to set up a dedicated mechanism for investigating securities-related offenses to ensure faster and more effective enforcement.

With clear deadlines and structured reforms, SEBON’s implementation plan is expected to restore investor confidence and bring structural improvement to Nepal’s capital market.