The Securities Board of Nepal (SEBON) has unveiled the proposed Institutional Investor Policy 2083 and invited stakeholders to submit feedback and suggestions. The policy aims to encourage greater and more responsible participation by institutional investors in Nepal’s primary and secondary securities markets.

The proposed framework has been developed in line with the Capital Market Development Roadmap 2083, SEBON’s capital market policy for fiscal year 2083/84, and the 21-point Capital Market Strengthening and Revival Action Plan 2083 announced by the Ministry of Finance on Bhadra 29, 2083.

The policy seeks to establish clear and consistent arrangements for institutional investors to enter and operate in the capital market. Its proposed provisions cover investor classification and registration, investment diversification, financial instruments, investment limits, corporate governance, risk management, market conduct and disclosure requirements.

It also outlines regulatory supervision and a phased implementation approach. In addition, the proposal calls for legal and regulatory reforms to facilitate institutional investment and stronger coordination among relevant government bodies and regulatory agencies.

Nepal’s capital market is currently dominated by individual investors. SEBON expects the proposed policy to support the entry and long-term growth of professional and capable institutional investors, potentially contributing to a more balanced investment environment.

According to SEBON, increased institutional participation could help deepen the market, improve liquidity and transparency, and support greater stability. These developments are expected to contribute to a more sustainable capital market as part of Nepal’s broader financial system.

SEBON has invited concerned stakeholders and other interested parties to provide constructive feedback on the proposed policy before its further development and implementation.