Kathmandu: The Government of Nepal has introduced the “Economic Reform Implementation Action Plan 2082,” aiming to fortify the nation’s capital market through a series of strategic initiatives. This comprehensive plan is grounded in the recommendations of the High-Level Economic Reform Suggestion Commission, chaired by Rameshore Khanal, and was approved by the Council of Ministers on Jestha 6.
Key Reforms and Initiatives:
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Restructuring of Regulatory Bodies: The Securities Board of Nepal (SEBON) will undergo significant restructuring. The board will now include the Revenue Secretary and a Deputy Governor from Nepal Rastra Bank as representatives. Additionally, expert members will be added, while representatives from the private sector and other ministries will be removed. This restructuring is slated for completion within one year.
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Revamping NEPSE and CDSC: The Nepal Stock Exchange (NEPSE) will be restructured within a year to enhance private sector participation and capital growth. Similarly, CDS and Clearing Limited (CDSC) will be restructured to provide secure depository services for securities.
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Margin Lending Facility: To facilitate securities transactions, a margin lending system will be implemented through securities dealers within a year.
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Hydropower IPO Regulations: Hydropower companies will now be permitted to issue primary shares only after commencing production. This regulation is expected to be enforced within two years.
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Premium and Book Building Methods: To enhance transparency in the share issuance process, the premium and book building methods will be introduced within six months.
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Investor Awareness Programs: Continuous efforts will be made to increase public awareness about the capital market and mobilize financial instruments. SEBON will be the primary responsible body for these initiatives.
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Institutional Investment Improvements: Instead of direct state loans to government institutions, a system will be established to raise capital through bond issuance within a year. For private sector production companies, the share and bond issuance process will be facilitated by reducing costs and simplifying procedures, to be implemented within six months.
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Secondary Market and Alternative Instruments: To make government bond secondary market transactions more accessible, necessary arrangements will be implemented within a year. The Ministry of Finance and SEBON will serve as the implementing bodies, while the Office of the Prime Minister and Council of Ministers and Nepal Rastra Bank will oversee monitoring.
The government believes that the effective implementation of this action plan will strengthen Nepal’s capital market and create a long-term investment-friendly environment.