SEBON Prioritizes IT Investment to Strengthen Nepal’s Securities Market Regulation

23rd July 2025, Kathmandu

The Securities Board of Nepal (SEBON) has announced a significant strategic shift, prioritizing information technology (IT) investments and policy reforms to enhance service delivery and improve the effectiveness of securities market regulation. This move underscores SEBON’s commitment to modernizing Nepal’s capital market.

SEBON IT Investment Strengthen

In its policy and program document for the current fiscal year, SEBON unveiled a comprehensive nine-point IT-focused program. This ambitious initiative aims to develop a robust IT infrastructure, ensuring high-quality, efficient, and dynamic use of technology within the Board itself and across the broader capital market ecosystem.

Key IT Initiatives by SEBON for the Current Fiscal Year

SEBON’s strategic IT plan encompasses several critical areas designed to bring the Nepalese securities market in line with international standards:

Policy and Manual Revision: SEBON will undertake a thorough revision of its existing Information Technology Policy, 2075, and the SEBON ICT Operational Manual 2020. The goal is to update these foundational documents to reflect current needs and align with international best practices, ensuring a modern regulatory framework.

Automated Real-Time Surveillance System: To achieve more effective oversight, the Board plans to conduct necessary studies and initiate the procurement process for an automated surveillance system and a Capital Market Supervision Information System. This critical upgrade will enable real-time monitoring of securities transactions, significantly enhancing regulatory capabilities.

IT Guidelines and Audit Framework: To guarantee the quality and reliability of IT systems used by all participants in the capital market, SEBON will develop comprehensive IT guidelines and a system audit framework. These will be based on international principles and standards, promoting transparency and trust.

International System Audits: Ensuring the integrity of transaction systems is paramount. SEBON will mandate that all such systems undergo comprehensive audits conducted by internationally recognized system auditors, adding a layer of credibility and security.

Cybersecurity and Awareness: Recognizing the growing importance of digital security, SEBON will launch cybersecurity awareness and orientation programs. These initiatives will target both investors and securities professionals, promoting safe, secure, and standardized use of IT in the securities market, with a strong focus on risk mitigation strategies.

Establishment of a Centralized Data Center: A crucial step towards efficient data management is the establishment of a dedicated Data Center at SEBON. This center will be responsible for the proper archival and management of existing data and information, and will also support data storage and distribution from current and upcoming systems, forming the backbone of SEBON’s digital future.

Digital Market Transformation Studies: Looking ahead, SEBON will conduct essential feasibility studies on Business Process Digitization, the establishment of a Central Capital Market Data Bank, a Disaster Recovery Site, and the implementation of XBRL Systems. Future development work and strategic decisions will be directly informed by the findings of these comprehensive studies.

These strategic IT investments highlight SEBON’s commitment to fostering a more transparent, efficient, and secure securities market in Nepal, ultimately benefiting investors and market participants alike.

About SEBON

Securities Board of Nepal (SEBON) was established by the Government of Nepal on June 7, 1993, as an apex regulator of Securities Markets. It has been regulating the market under the Securities Act, 2006. The Governing Board of SEBON is composed of seven members, including one full-time chairman appointed by the Government for a tenure of four years. Other members of the Board include joint secretary of Ministry of Finance, joint secretary of Ministry of Law, Justice and Parliamentary Affairs, representative from Nepal Rastra Bank, representative from Institute of Chartered Accountants of Nepal, representative from Federation of Nepalese Chambers of Commerce and Industries, and one member appointed by the Government from amongst the experts about management of securities market, development of capital market, financial or economic sector.

Division and Department

There are four departments, namely Regulation Department, Supervision Department, Commodity Market and Research Department, and Management & Legal Department, in SEBON. Under these departments, there are eight divisions, namely Securities Market and Listed Companies Division, Stock Broker Dealer Division, Regulation Division, Legal Division, Policy, Research & Planning Division, Commodities Exchange and Business Person Division, Securities Businesspersons Supervision Division, and Management and Finance Division. Under these divisions, there are a total of twenty sections.

The major financial sources of SEBON are the government grant, transaction fee from the stock exchange, and registration fee of corporate securities. Other financing sources include registration and renewal of stock exchange and market intermediaries, and the income from mobilization of its revolving fund.

Major functions and duties

Provide advice to Government on matters related to the development of the capital market.

Issue necessary securities regulations and directives.

Register the securities of public companies.

Regulate and systematize the issue, transfer, sale, and exchange of registered securities.

Issue license to operate stock exchange.

Issue license to stock broker, dealer, merchant banker, and fund manager.

Issue license to depository company, depository participant, and credit rating agency.

Register mutual funds, grant permission to operate collective investment schemes, and supervise and monitor them.

Approve the bye-laws of stock exchange and depository company.

Take necessary actions to prevent insider trading or any other offenses relating to transactions in securities to protect the interest of investors in securities.

Establish coordination and exchange cooperation with appropriate agencies in order to supervise and regulate matters concerning securities or companies.

Discharge or make arrangements for discharging such other functions as are necessary for the development of the capital market.

For more: SEBON IT Investment Strengthen