The Nepal Securities Board (SEBON) has announced a new ‘Digital First’ policy to make the capital market fully technology-friendly, including using AI for market surveillance.
The Nepal Securities Board (SEBON) has launched its ‘Digital First’ concept as part of the capital market policy for the fiscal year 2083/84. This initiative aims to make the capital market completely technology-friendly. Under this policy, SEBON will expand the use of Artificial Intelligence (AI), Big Data, and digital systems for everything from market monitoring to service provision.
The Board plans to change itself from a traditional regulator into a technology-powered one. To achieve this, SupTech (Supervisory Technology) and RegTech (Regulatory Technology) will be put into practice. Also, an AI-based real-time monitoring system will be developed to spot suspicious dealings, insider trading, and price manipulation in the market.
SEBON also presented a plan to make most capital market services completely digital. Processes like licensing, security listing, report submission, and handling investor complaints will operate through a single, integrated digital system. The policy also mentions studying the possibility of implementing digital KYC and biometric identification systems to make the investor KYC process easier.
The Board will also explore the use of blockchain technology to make recording securities and settling transactions more secure and efficient.
With more digital transactions, cyber security is getting a high priority. A Financial Computer Emergency Response Team (Fin-CERT) will be formed to manage cyber attacks and technical risks that might affect capital market information systems. The policy also makes it compulsory to have regular cyber security audits for market infrastructure institutions like Nepal Stock Exchange (NEPSE) and CDS and Clearing (CDSC).
Additionally, SEBON has proposed a plan to develop an integrated capital market data management system for securely handling capital market-related data.
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.
