The Securities Board of Nepal (SEBON) is preparing a major overhaul of Nepal’s capital market, with plans to introduce new mechanisms and investment opportunities aimed at modernizing and diversifying the market.

Speaking at the Nepal Capital Market Discourse 2026, SEBON Chairman Dr. Gopal Prasad Bhatta said several new initiatives could be introduced in Nepal’s capital market within the next year.

One of the key areas of reform is the development of a genuine price discovery mechanism in the primary market. According to Bhatta, Nepal currently lacks an effective system for determining the fair value of securities before they enter the market.

To address this gap, SEBON is working toward developing qualified institutional investors that can play a role in determining appropriate prices for shares, bonds and other securities.

Bhatta said Nepal’s capital market should not remain concentrated on secondary-market share trading. He emphasized the need to expand the bond and debt securities market so that businesses can raise capital directly from investors instead of depending primarily on bank financing.

SEBON is also planning to create new opportunities for startups and small and medium-sized enterprises (SMEs) to raise funds through the capital market.

Under the proposed approach, smaller companies could enter the market through a separate platform and later move to the main board as they expand and meet the required criteria.

The regulator is also moving toward risk-based and technology-driven regulation and supervision. The approach is intended to strengthen market discipline, improve regulatory efficiency and reduce administrative delays.

Bhatta said discussions are also underway with the government regarding amendments to the Securities Act and the development of a new legal framework for Nepal’s capital market.

The broader objective, according to Bhatta, is to transform Nepal’s capital market into a more diversified and modern financial system, where businesses at different stages can access capital and investors can select financial instruments based on their risk capacity.

With several initiatives expected to become visible over the coming year, SEBON’s plans point toward a capital market that extends beyond traditional equity trading to include price discovery, debt financing, startup funding and technology-driven regulation.