Nepal Securities Board (SEBON) announced to implement a ‘Capital Market Coordination Framework’ to ensure financial stability and effectively advance market reform programs, as part of its Capital Market Policy for fiscal year 2083/84.
This framework aims to shift the capital market from a system too dependent on banks towards a more varied financial system. To achieve this, there will be regular discussions and formal cooperation among the Ministry of Finance, Nepal Rastra Bank (NRB), Nepal Securities Board (SEBON), Nepal Insurance Authority (NIA), and the Office of Company Registrar (OCR).
According to the policy, this structure main aim is to maintain consistent policy rules among all financial sector regulators. It also ensures that market reform activities are carried out effectively.
To study and resolve complex legal and policy issues that appear in the market, a ‘Joint Task Force’ will be formed. This task force will include representatives from various bodies. These teams will study and recommend timely changes to necessary laws and regulations.
The Board also has a plan to work with Nepal Rastra Bank and other regulators. This is to spot ‘Systemic Risk’ early, which mean risks that could affect the entire financial system. By doing so, they aim to keep financial stability.
Furthermore, the policy aims to encourage making policies based on good research. For this, SEBON will share knowledge and work together with professional groups like the Institute of Chartered Accountants of Nepal (ICAN).
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.
