The Securities Board of Nepal (SEBON) has announced plans to launch a dedicated SME Board to help startups and small and medium-sized enterprises (SMEs) raise capital through Nepal's capital market. Introduced under the Capital Market Policy for FY 2083/84, the initiative aims to reduce reliance on bank financing by expanding access to risk capital.

Under the proposed framework, SMEs will be able to list their shares by meeting simplified listing requirements compared to companies listed on the main trading board. SEBON also plans to ease disclosure requirements, regulatory compliance, and financial reporting obligations to better suit smaller businesses. Companies that successfully meet predefined growth and governance standards will eventually be eligible for graduation to the main trading board.

The policy also seeks to strengthen startup financing through private equity and venture capital investments, particularly for businesses operating in technology, agriculture, tourism, manufacturing, and innovation-driven sectors. These funding mechanisms are expected to provide early-stage companies with greater access to long-term capital.

In addition, SEBON plans to study the feasibility of introducing equity crowdfunding in Nepal by creating an appropriate legal and regulatory framework. If implemented, startups and SMEs will be able to raise equity capital directly from the public, creating an alternative source of investment beyond traditional financing.

To improve market readiness, SEBON will promote business advisory services, corporate governance, financial reporting, and transparency among startups and SMEs. The board also plans to collaborate with universities, research institutions, and incubation centers to connect innovation-driven entrepreneurs with the capital market. Special initiatives targeting youth-led and women-led enterprises are also included in the policy.

The implementation roadmap further proposes tax incentives for companies listed on the SME Board, lower issuance costs for shares and debentures, and expanded research coverage to improve investor awareness. SEBON believes these measures will enhance transparency, strengthen investor confidence, and encourage greater investment in Nepal's SME sector.