Securities Board of Nepal unveils capital market reform policy

The Securities Board of Nepal (SEBON) has approved the Primary Capital Market Reform Policy, 2026. The initiative aims to modernize Nepal’s primary capital market into a competitive, technology-driven financing source capable of supporting long-term national economic development over the next 10 to 15 years.

Key reforms include the digitalization of the initial public offering (IPO) process through end-to-end digital systems, e-KYC, and digital prospectuses. The policy seeks to increase transparency and expand market access for small and medium enterprises (SMEs), technology-driven firms, and innovation-oriented businesses. To ensure the proper use of capital, a Public Issue Proceeds Monitoring Committee will be established.

The policy also introduces market-based pricing systems and special provisions for qualified institutional and anchor investors. It includes incentives for sustainable development, such as green finance and social impact investments. Implementation will occur in phases, involving coordination between SEBON, Nepal Rastra Bank, the Office of the Company Registrar, the Nepal Stock Exchange, and CDS and Clearing Limited.