SEBON Publishes Capital Market Reform Implementation Plan

The Securities Board of Nepal (SEBON) has unveiled a comprehensive implementation plan to execute the recommendations of the Capital Market Reform Task Force. The announcement follows investor pressure after stakeholders staged a demonstration demanding immediate action.

The plan outlines nine priority measures under SEBON’s direct responsibility:

1. Margin Trading System: SEBON will implement the margin trading framework via licensed brokers. A study committee has been formed, and the report will guide implementation by the end of Kartik.

2. Uniform Guidelines for CDS & Clearing: Standards for operational consistency in electronic registration (E-Registry) are finalized and set for approval and implementation by the end of Kartik.

3. Dividend Tax Handling: Listed companies will be instructed to reconcile and pay bonus share-related dividend taxes promptly.

4. Broker Payment Consistency: SEBON will establish standardized procedures for situations where investors or brokers fail to settle transactions on time. A benchmark interest system will be implemented by Mangsir 15.

5. Multiple Beneficiary Accounts: Investors will be allowed to open two or more beneficiary accounts, with CDSCL directed to implement this by Mangsir 15.

6. Company Classification & Cash Margin: NEPSE will classify listed companies based on financial strength, liquidity, and governance. Z-category firms will require 100% cash margin trading.

7. Investor Complaint Mechanism: SEBON will establish a robust system for real-time grievance management.

8. Investor Education: Training sessions and workshops on capital market awareness will be conducted promptly.

9. Dedicated Enforcement Unit: A specialized unit will be set up to investigate securities-related offenses efficiently.

SEBON emphasized that these measures are designed to restore investor confidence, improve market transparency, and facilitate smoother brokerage operations.