The Securities Board of Nepal (SEBON) has made public the draft of the Debenture Registration and Issuance Regulations, 2083 (2026), seeking feedback from stakeholders as it moves to strengthen Nepal's debenture and corporate bond market.

SEBON has asked interested stakeholders to submit their views, suggestions and feedback on the draft within seven days from its publication. The feedback will be reviewed before the regulations are finalized.

The move is part of SEBON's broader effort to shift Nepal's capital market from an equity-centric market to a multi-product capital market. The regulator has identified the development of the debenture market as an important part of diversifying investment and financing options available in the country's capital market.

The Capital Market Development Roadmap, 2083 has also identified the expansion of the debenture market as part of broader capital market reforms. Similarly, SEBON's policy and programme for fiscal year 2083/84 (2026/27) includes measures aimed at energizing the debenture market and developing Nepal's corporate bond market.

SEBON said a stronger debenture and bond market would help improve the depth and liquidity of the capital market while also providing investors with additional instruments for managing risk.

At present, Nepal's capital market remains heavily centered on equity securities. Expanding the availability of fixed-income instruments such as debentures and corporate bonds would give investors alternatives to equity investments while providing companies with another way to raise long-term financing.

The regulator also intends to make it possible for eligible organized entities, in addition to banks and financial institutions, to mobilize long-term financial resources through debentures. This could broaden the range of issuers participating in Nepal's debt market.

The draft regulations have been prepared by reviewing international best practices. SEBON said the objective is to make the existing framework for debenture registration and issuance more systematic, transparent, effective and timely.

The proposed regulations were also discussed by SEBON's Law Enforcement Committee. Following the necessary revisions, the committee submitted the draft to the Board, which has now published it for public consultation.

Stakeholders have been given seven days to provide their comments and suggestions. SEBON has requested submissions through [email protected].

After reviewing the feedback received from stakeholders, SEBON will make the necessary changes and proceed with finalizing the regulations.

If implemented effectively, the new framework could help expand Nepal's debt market and gradually reduce the capital market's dependence on equities, while giving businesses and investors more ways to raise and deploy long-term capital.