Securities Board publishes 'Institutional Investor Policy, 2083' aiming to streamline institutional investment

Kathmandu. The Nepal Securities Board has published the 'Institutional Investor Policy, 2083'. The Board released the policy with the objective of expanding and streamlining the entry of institutional investors in the securities market.

Through this policy, the Board aims to mobilize long-term capital, increase market liquidity and depth, and streamline institutional investment.

The policy has been prepared in accordance with the 'Capital Market Development Roadmap, 2083', the Board's capital market policy for fiscal year 2083/84, and the Capital Market Strengthening and Revival Action Plan, 2083 (21 points) announced by the Government of Nepal, Ministry of Finance on 2083/5/29. The Board stated that it has called for constructive opinions and suggestions from stakeholders to expand the active and responsible participation of institutional investors in Nepal's capital market and develop the overall capital market as a balanced and sustainable financial system.

The policy aims to provide clear guidance for necessary policy, institutional, and procedural arrangements to make the entry and operation of institutional investors in the primary and secondary securities markets convenient, uniform, clear, and responsible.

The proposed policy includes the following provisions:

• Classification and registration of institutional investors
• Investment diversification and financial instruments
• Determination of investment limits
• Governance
• Risk management
• Market conduct
• Information disclosure
• Regulatory monitoring and phased implementation

Additionally, the policy incorporates the concept of legal and regulatory reforms and coordination among relevant bodies necessary to expand the participation of institutional investors.