SEBON Chairman & NRB Governor Meet: Strengthening Nepal Financial Market Stability
24th May 2025, Kathmandu
In a significant move to strengthen institutional cooperation, the Chairman of the Securities Board of Nepal (SEBON), Santosh Narayan Shrestha, held a formal courtesy meeting with Dr. Biswo Nath Paudel, the newly appointed Governor of Nepal Rastra Bank (NRB).
SEBON Chairman NRB Governor Meet
The meeting took place in Kathmandu and emphasized mutual goodwill, coordination, and the shared responsibility of enhancing Nepal’s financial ecosystem.
Chairman Shrestha congratulated Dr. Paudel on his appointment as the central bank’s Governor. He wished him a successful and impactful tenure. The exchange highlighted the importance of strong relationships between regulatory institutions.
Emphasis on Coordination for Economic Stability
Both leaders agreed that effective coordination between SEBON and NRB is essential. They stressed that Nepal’s financial system must be dynamic, well-regulated, and capable of supporting sustainable economic development.
Chairman Shrestha and Governor Paudel acknowledged that financial discipline and stability are key to gaining investor confidence. They also discussed how seamless cooperation between the capital and banking sectors can ensure balanced economic growth.
While SEBON oversees the capital market, NRB regulates the monetary and banking sectors. Both institutions play a vital role in Nepal’s financial landscape. Therefore, alignment of policies and timely consultations between them are necessary to address overlapping issues.
Dialogue on Capital Market Transformation
A major focus of the discussion was the transformation of Nepal’s capital market. Chairman Shrestha raised the concerns frequently voiced by investors. These include market transparency, product diversification, and simplified procedures.
Governor Paudel showed interest in understanding investor expectations and expressed willingness to support reforms. The two agreed that resolving investor concerns in a timely and systematic manner can enhance participation and trust in the market.
SEBON believes that a vibrant and inclusive capital market can offer alternative sources of financing to businesses. Moreover, it reduces over-reliance on traditional banking systems.
Aligning Policies for Market Modernization
Both officials discussed the need for continuous modernization of financial policies. They talked about creating new investment opportunities, digital transformation, and risk management frameworks.
Chairman Shrestha pointed out that the capital market is evolving quickly. Thus, regulatory frameworks should be flexible, proactive, and innovation-friendly. He stressed the need for investor education, digital onboarding, and protection measures.
On the other hand, Governor Paudel noted that policy consistency is essential. He added that regulations should support long-term capital formation and attract both domestic and foreign investments.
Enhancing Institutional Capacity and Coordination
The meeting also touched on the importance of building institutional capacity. Chairman Shrestha highlighted that SEBON and NRB must strengthen internal systems and adopt global best practices.
The Governor supported this idea. He noted that trained human resources, technology integration, and real-time data exchange between regulatory bodies would lead to more informed decisions.
Furthermore, they discussed the potential of joint task forces and inter-agency working groups to streamline policy implementation and monitoring.
Shared Commitment to Economic Growth
Both leaders expressed their commitment to Nepal’s economic development. They believe a strong financial system can fuel industrial growth, infrastructure development, and entrepreneurship.
SEBON’s Chairman said that the capital market should be seen not just as a place to trade stocks, but also as a platform to raise long-term funds for national projects. Governor Paudel agreed and highlighted the need to mobilize domestic savings effectively.
They also acknowledged the importance of improving public trust in regulatory institutions. For this, transparency, prompt service delivery, and clear communication with stakeholders are essential.
Transitioning Toward Long-Term Collaboration
This meeting marks the beginning of a more structured and cooperative relationship between the two regulatory bodies. Going forward, both SEBON and NRB plan to hold regular dialogues, share technical expertise, and address common regulatory challenges together.
Both leaders also agreed to coordinate on public awareness campaigns. These campaigns will educate citizens about financial literacy, capital market participation, and digital finance.
Future Steps and Policy Outlook
The exchange between Chairman Shrestha and Governor Paudel signals a new chapter for Nepal’s financial sector. By working together, the two institutions aim to make Nepal’s financial system more resilient, inclusive, and globally competitive.
SEBON expects to continue addressing investor concerns through regulatory reforms and technological innovations. Meanwhile, NRB plans to support macroeconomic stability by ensuring sound banking practices and sustainable credit growth.
Together, they aim to balance the short-term needs of the market with the long-term goals of national prosperity.
Conclusion
The meeting between SEBON Chairman Santosh Narayan Shrestha and NRB Governor Dr. Biswo Nath Paudel goes beyond a simple courtesy visit. It reflects a mutual understanding of the urgency to reform, modernize, and collaborate. With both regulators committed to advancing Nepal’s financial architecture, the country can look forward to a more integrated, transparent, and investor-friendly economic environment.
For more: SEBON Chairman NRB Governor Meet
