SEBON Chairman Receives 38-Point Capital Market Reform Plan in Nepal
8th October 2026, Kathmandu
Three leading Nepal investor organizations have submitted a joint 38-point reform proposal to SEBON Chairman Dr. Gopal Bhatta. The recommendations aim to modernize Nepal’s capital market by reducing promoter share notice periods, standardizing margin trading rules, refining IPO price adjustments, and accelerating secondary market trade settlements.
In a major collaborative push to reform Nepal’s stock market, three prominent investor organizations have submitted a comprehensive 38-point recommendation letter to the Chairman of the Securities Board of Nepal (SEBON), Dr. Gopal Bhatta.
The joint initiative spearheaded by the Nepal Investors Forum, the Nepal Capital Market Investors Association, and the Share Investors Association Nepal outlines urgent policy and structural changes designed to make the capital market more transparent, competitive, and investor-friendly.
6 Key Pillars of the 38-Point Proposal
The 38 recommendations are categorized under six major thematic headings, covering the entire lifecycle of capital market operations in Nepal:
1. Secondary Market Operations
Investors called for an environment that guarantees independent, fair, and unhindered trading in the secondary market. The proposal stresses eliminating unnecessary regulatory delays, reducing market distortions, and safeguarding market-driven price discovery mechanisms.
2. IPO & Promoter Share Restructuring
One of the headline demands is the reduction of the mandatory 15-day advance notice requirement for selling promoter shares. Investors argue that prolonged notice windows create artificial market speculation and liquidity bottlenecks. The delegation also requested refined rules for initial public offerings (IPOs) to protect retail investors.
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3. Price Adjustments for Bonus & Rights Shares
The submission highlights the need for a modern, standardized methodology when calculating price adjustments following bonus share distributions and rights share issuances. Investors urged SEBON to automate and synchronize these adjustments to avoid trading confusion.
4. Standardizing Margin Trading
To expand market liquidity safely, the proposal calls for uniform criteria and equal standards for margin trading across all brokerage firms and financial institutions. Eliminating inconsistent risk parameters will allow wider, more reliable access to leverage for qualified investors.
5. Clearing and Trade Settlement Enhancements
The groups advocated for faster, more predictable trade clearing and settlement cycles. Upgrading technical infrastructure and enforcing strict timelines for share transfers and payout dispatch were highlighted as top priorities.
6. Overall Regulatory & Policy Reforms
To raise Nepal’s capital market to international standards, the joint delegation called for a complete review of outdated regulatory frameworks, stronger enforcement against market manipulation, and institutional strengthening of SEBON itself.
What This Means for Nepal’s Capital Market
The joint proposal comes at a critical time as retail and institutional participation in Nepal’s stock market continues to grow. By addressing longstanding systemic bottlenecks—such as rigid promoter share lock-ins, fragmented margin trading rules, and settlement delays—the proposed changes aim to build long-term confidence among domestic and international investors.
SEBON Chairman Dr. Gopal Bhatta acknowledged the submission, with investor leaders expressing optimism that the regulator will prioritize these actionable reforms in upcoming policy announcements.
For more: SEBON Chairman 38-Point Capital Market
