SEBON Forms Committee to Diversify Nepal’s Capital Market Instruments
The Securities Board of Nepal (SEBON) has established a seven-member committee to develop and implement new financial instruments, aiming to reduce the market's over-reliance on equity trading. The committee will study corporate bonds, ETFs, REITs, InvITs, and derivatives, among others, and advance their implementation in line with the Capital Market Development Roadmap 2026.
KATHMANDU, Oct 31 — The Securities Board of Nepal (SEBON) has formed a seven-member committee to develop and implement new financial instruments, part of a broader effort to diversify and expand Nepal’s capital market.
The committee, led by Deepa Dahal, acting executive director of SEBON, includes representatives from Nepal Rastra Bank, the Nepal Stock Exchange (NEPSE), and the Merchant Bankers’ Association of Nepal.
SEBON has mandated the panel to build the necessary legal, technical, and institutional infrastructure to expand the range of financial instruments traded in the capital market, thereby reducing the current over-reliance on equity (share) trading.
The committee has been tasked with studying the development of various financial instruments within Nepal's securities market and subsequently advancing the process for their implementation. These include:
- Corporate bonds
- Government bonds
- Municipal bonds
- Green bonds
- Infrastructure bonds
- Exchange-Traded Funds (ETFs)
- Real Estate Investment Trusts (REITs)
- Infrastructure Investment Trusts (InvITs)
Similarly, the committee’s scope includes exploring the possibility of introducing derivative financial instruments in a phased manner. This entails studying the necessary market structure and infrastructure for the development and operation of instruments such as commodity futures and currency derivatives.
The ‘Capital Market Development Roadmap of Nepal, 2026,’ released by SEBON, also prioritizes market depth and diversification. The roadmap outlines a plan for the phased development of various segments, including the corporate bond market, green bonds, municipal bonds, ETFs, REITs, InvITs, and the derivatives market.