MP Bidushi Rana has urged the Securities Board of Nepal (SEBON) to provide clear action plans and specific timelines for the long-term development of the capital market, including the launch of new financial instruments like REITs, ETFs, and the SME Exchange.
During a recent meeting of the House of Representatives Finance Committee on Wednesday, Member of Parliament Bidushi Rana of the Rastriya Swatantra Party (RSP) pressed the Securities Board of Nepal (SEBON) for a clear action plan and strict timeline. Her focus was on boosting the capital market’s long-term growth, expanding institutional investment, and implementing new financial tools.
MP Rana pointed out that while Nepal currently has around 79 lakh Demat accounts and over 70 lakh ‘Mero Share’ users, the capital market’s depth and liquidity remain limited. She questioned SEBON on its concrete strategy for increasing long-term and institutional investment.
For many years, SEBON has been talking about introducing new financial instruments such as a corporate bond market, an SME Exchange, Real Estate Investment Trusts (REITs), Exchange Traded Funds (ETFs), and venture capital. However, Rana demanded a transparent action plan and a specific timeline from SEBON, clearly stating which of these instruments will become operational and when.
She presented data showing Nepal’s market capitalization reached 70.52 percent of its Gross Domestic Product (GDP). MP Rana questioned how the new capital flow into industrial, infrastructure, energy, and other productive sectors through the capital market is actually measured. She also asked SEBON to define the true indicator of success for Nepal’s capital market.
Addressing the goal of attracting foreign institutional investment, Rana highlighted that foreign investors first assess market transparency, regulatory frameworks, and infrastructure before coming to Nepal. She asked SEBON to share its priority reforms aimed at attracting foreign institutional investment within the next two years.
MP Rana also inquire about the operational timeline for SEBON’s planned AI (Artificial Intelligence)-based market surveillance system, real-time market monitoring, and strengthened cybersecurity system. She wanted to know when investors can expect to directly benefit from these advancements.
Emphasizing the need for the capital market to be an engine for Nepal’s economic development, not just a platform for buying and selling shares, MP Rana sought clarification from SEBON. She asked what concrete results the capital market expect to deliver in terms of increased production, employment, and investment over the next three years.
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.
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