SEBON Opens Public Consultation on Private Equity and Venture Capital Study to Boost Long-Term Capital
The Securities Board of Nepal (SEBON) has published a comprehensive study on the Private Equity and Venture Capital (PEVC) sector and opened it for public consultation. The study, tied to the Government's FY 2083/84 budget and SEBON's capital market policy initiatives, proposes risk-based regulation, investor protection, and digital supervision to strengthen Nepal's PEVC ecosystem.
The Securities Board of Nepal (SEBON) has completed and published a comprehensive study on the Private Equity and Venture Capital (PEVC) sector, aimed at expanding the availability of long-term capital to support Nepal's economic transformation, entrepreneurship, and the sustainable development of its capital market.
The study has been made public as part of the implementation of the Government's Annual Budget for Fiscal Year 2083/84, the Ministry of Finance's Capital Market Strengthening and Revival Action Plan 2083, and SEBON's broader capital market policy initiatives.
SEBON said the study has been released for public consultation to gather views and suggestions from stakeholders and to identify areas requiring regulatory and policy improvements in the PEVC sector.
The study emphasizes that PEVC should not be viewed solely as a specialized investment fund mechanism. Instead, it should be developed as an important component of Nepal's broader economic development framework, supporting:
- Entrepreneurship and innovation
- Job creation
- Foreign capital mobilization
- Expansion of the public capital market
According to the study, a stronger PEVC ecosystem can help channel capital toward productive businesses and emerging enterprises, while creating opportunities for innovative and growth-oriented companies to access long-term financing.
Drawing on international practices, the study has identified several areas as key foundations for future regulatory reforms. These include:
- Risk-based regulation
- Investor protection
- Corporate governance
- Transparency
- Asset protection
- Classification of qualified investors
- Digital supervision systems
The approach is intended to create a regulatory framework that can support the growth of the PEVC industry while maintaining market integrity and protecting investors.
By making the study public, SEBON is seeking feedback from stakeholders on the proposed reforms and recommendations. The consultation is expected to help refine the regulatory framework and address existing challenges in Nepal's PEVC ecosystem.
SEBON expressed confidence that effective implementation of the study's recommendations would help mobilize productive capital, promote entrepreneurship, and strengthen Nepal's overall private equity and venture capital ecosystem.