Banking News – Chairman of the Securities Board of Nepal (SEBON), Dr. Gopal Bhatta, has stated that preparations are underway for a comprehensive transformation in Nepal’s capital market. Addressing the Nepal Capital Market Discourse 2026, organized by Banking Samachar with NASA Securities as the main sponsor, Chairman Bhatta said significant work will take place in various areas of the capital market within the next year.

Chairman Bhatta stated that Nepal’s capital market is currently understood only in terms of the stock market and secondary market trading, and efforts are being made to make it broader and more modern. According to him, the primary objective of the capital market is to effectively mobilize resources between sectors that need capital and those that want to invest. He stated that since industrialists, businessmen, and the government are in the “deficit sector” requiring capital, an environment must be created for them to raise direct capital through the market rather than relying solely on the banking system.

Need to End Reliance on Banks

Chairman Bhatta noted that the practice of going to banks and financial institutions when loans are needed is prevalent in Nepal, and emphasized the need to make the bond market effective as well. “When a loan is needed, bonds can be issued. But we have the practice of running to banks whenever a loan is needed,” he said. “The bond market plays a major role in the capital market.” He stated that companies requiring equity capital can raise funds through the equity market, and companies requiring debt can mobilize resources through the bond market, and this system needs to be strengthened.

“Price Discovery” as Key Agenda in Primary Market

Chairman Bhatta stated that the primary market is an important area for upcoming reforms. He emphasized the need to develop a system where the actual price of shares or bonds issued by companies is identified by the market itself. According to him, the practice of proper pricing and “price discovery” in Nepal’s primary market has not adequately developed. He informed that efforts are underway to develop capable institutional investors to improve this. “The correct price of capital must be determined in the capital market. We are taking the primary market in that direction,” he said.

Preparations to Take Secondary Market to New Framework

Chairman Bhatta stated that effective operation of the secondary market is essential for the development of the primary market. He said the secondary market provides liquidity to shares, bonds, and other securities issued in the primary market, while also performing continuous price discovery. Noting that the secondary market in Nepal is currently understood only as trading at Nepal Stock Exchange (NEPSE) and fluctuations in the stock market index, he stated that a change in its infrastructure and approach is now necessary.

Plans to Connect Startups to Large Industries with Market

Chairman Bhatta informed that SEBON has advanced plans to connect startups, small and medium enterprises (SMEs), and large industries with the capital market. According to Chairman Bhatta, the goal is to provide a separate platform for small companies to enter the capital market, bring eligible companies to the “main board” as they expand, and create an environment for expanding trading to an international level. “We are moving forward with the objective that companies at every stage of entrepreneurship can directly raise capital from the market, and investors can invest in various financial instruments according to their risk-bearing capacity,” he said.

Supporting Government for Securities Act Amendment

Chairman Bhatta also informed that SEBON is supporting the government for amendment of the Securities Act and development of a new legal framework. He claimed that intensive work is underway on this matter and results will be visible within some time. He stated that the development of the capital market is not just about expanding share trading but about making the country’s overall financial system more effective.