The Nepal Securities Board (SEBON) has announced its plans to draft three new acts to significantly reform the country’s capital market laws, aligning them with international standards.
The Nepal Securities Board (SEBON), while publishing its capital market policy for the fiscal year 2083/84, stated its commitment to operating Nepal’s capital market according to global benchmarks. The board has placed high priority on legal reforms to effectively address rapid market changes, the introduction of new financial instruments, and digital trading.
Three New Acts in the Pipeline
As per the Board’s Policy and Action Matrix, drafts for three important acts will be prepared and submitted to the government in the upcoming fiscal year. These include the ‘Nepal Securities Board Act’, the ‘Securities Market Management and Offenses & Penalties Act’, and the ‘Financial Sector Trustee Act’.
The proposed ‘Nepal Securities Board Act’ aims to develop the Board into a more autonomous, capable, and technology-friendly regulatory body. This move is expected to empower SEBON to carry out its functions with greater efficiency and independence.
Furthermore, through the ‘Securities Market Management and Offenses & Penalties Act’, the Board plans to make the management of the securities market more systematic. This act will also include provisions for strict penalties against financial crimes and securities-related offenses that may occur in the market.
The policy also outlines the preparation of a draft for the ‘Financial Sector Trustee Act’. This particular act is designed to legally regulate and secure trustee services within the financial sector, providing a robust framework for these crucial services.
Aligning with International Standards and Strengthening Regulation
SEBON has stated that these legal reforms will be gradually coordinated with the principles set by the International Organization of Securities Commissions (IOSCO) and the corporate governance standards of the OECD. Additionally, legal reforms aims to make securities registration, issuance, secondary market transactions, and information flow simpler, clearer, and more predictable for all market participants.
Alongside the new legal provisions, the Board will also strengthen regulatory system. As per the policy, a ‘Zero Tolerance’ approach will be adopted against any securities-related offenses and undesirable activities. Moreover, a ‘Risk-Based Supervision’ system will be institutionalized to ensure timely identification and management of potential risks that may emerge in the market.
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.
