The Nepal Securities Board has launched a comprehensive 10-year roadmap, divided into three phases, to transform the country’s capital market into an international-standard, technology-driven, and fully digital financial system by 2036.
The Nepal Securities Board (SEBON) recently made public its long-term roadmap for the next ten years, spanning from 2026 to 2036. This ambitious plan aim to make Nepal’s capital market global-standard, technologically advanced, and a fully digital financial system. The Board states that this initiative will shift the nation’s financial structure from being mostly bank-focused to one that is centered on the capital market, with the implementation divided into three distinct phases.
According to the policy, the roadmap divided into ‘Foundation Building’ (2026–2027), ‘Expansion and Modernization’ (2028–2030), and ‘Internationalization’ (2031–2036).
Phase One: Building the Foundation (2026-2027)
The first phase of the roadmap prioritizes improving securities laws, developing the capacity of financial institutions, and building digital infrastructure. During this period, key actions will include amending the Securities Act and updating corporate governance standards. It also introduces an Artificial Intelligence (AI) based market monitoring system, along with the rollout of e-KYC (electronic Know Your Customer) and digital disclosure platforms.
Furthermore, this phase will lay the groundwork for Non-Resident Nepalis (NRNs) to participate in the secondary market. SEBON also mentioned that it will establish the necessary legal frameworks for operating corporate bonds, green bonds, short selling, and intraday trading.
Phase Two: Expanding and Modernizing the Market (2028-2030)
Running from 2028 to 2030, the second phase focuses on deepening the market and expanding the range of available financial instruments. During these years, an SME Exchange and a Startup Board will be launched, helping small and innovative companies raise investment through the capital market.
Additionally, the Qualified Foreign Institutional Investor (QFII) framework will be put in place to allow foreign institutional investors into the market. Plans also include developing custodian banking services to support this.
The Board announced that this phase will introduce new financial instruments such as corporate bonds, green bonds, Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), and Exchange Traded Funds (ETFs). A pilot project using blockchain technology for securities settlement will also be implemented, with the goal of making the capital market completely paperless.
Phase Three: Towards Internationalization (2031-2036)
The final phase, from 2031 to 2036, will concentrate on connecting Nepal’s capital market with international markets. This stage involves setting up a derivatives market for instruments like stock futures, index futures, and currency derivatives. There are also plans to establish a commodity exchange to enable organized trading of items like gold, silver, and agricultural products such as tea, coffee, and cardamom.
Efforts in this phase will include cross-border securities settlement, developing an international custodian network, and working towards Nepal’s capital market being included in global indices. Along with this, SEBON aims to fully implement a blockchain-based settlement system and introduce a T+0 settlement system, which will enable immediate settlement of shares and funds.
Key Targets by 2036
Through this 10-year roadmap, SEBON has set ambitious targets: to increase market capitalization to over 150 percent of the Gross Domestic Product (GDP) and to achieve a daily trading volume exceeding Rs. 30 arba.
The Board states that once this plan fully implemented, Nepal’s capital market will not only be limited to share trading. Instead, it will evolve into a key financial base for national economic transformation and a major platform for attracting international investment.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
