Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Chairman of the Securities Board of Nepal (SEBON), Santosh Narayan Shrestha, has said that the board’s immediate priorities include issuing a license to a new stock exchange and simultaneously initiating a comprehensive restructuring of the Nepal Stock Exchange (NEPSE).
Speaking during a discussion at the Finance Committee of the House of Representatives on Thursday, Shrestha clarified that SEBON is moving ahead with both agendas in line with the government’s directives.
“The issue of licensing a new stock exchange is not new—it has been controversial for years. It has been taken to several parliamentary committees and courts. However, there is currently no legal barrier to issuing a license,” he said, noting that the Supreme Court has twice cleared the way for a new stock exchange.
Evaluation Process Underway
Shrestha revealed that SEBON has received three proposals, which are under sealed-envelope evaluation. Before finalizing any decision, the board is carefully studying recommendations made by the Chintamani Shivakoti Report, which has proposed new criteria and conditions for assessing applicant companies.
“The evaluation of the applicants is ongoing. The Shivakoti report has recommended stricter benchmarks, and we are studying how best to apply them,” he said.
Government’s Role Crucial in NEPSE Reform
On NEPSE restructuring, Shrestha emphasized the need for coordinated efforts between SEBON, NEPSE, and the Government of Nepal. He mentioned that SEBON has already sent an official letter to NEPSE requesting active engagement on restructuring matters.
“We’ve provided suggestions to the government and also written to NEPSE regarding the need for institutional reform. However, it’s clear that the government must take the lead to make meaningful progress in this area,” Shrestha said.
Nepal’s only stock exchange, NEPSE, has long been criticized for inefficiencies, lack of technological upgrades, and regulatory bottlenecks. The call for a competitive and modern capital market infrastructure has grown louder, particularly as the country looks to attract both domestic and foreign investment.
The entry of a new stock exchange could not only bring competition but also drive capital market reform, digitalization, and investor trust—critical for long-term economic development and financial sector stability.
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