Three Investor Groups Urge SEBON to Introduce Six Key Capital Market Reforms

The Nepal Investors Forum, Nepal Capital Market Investors Association and Share Investors Association Nepal have jointly submitted a six-point reform proposal to the Securities Board of Nepal (SEBON), calling for changes to several existing capital market and trading provisions. The associations have proposed reviewing rules related to secondary-market share sales, promoter transactions, IPO and promoter share structures, price adjustments, margin trading and settlement procedures. Among their key demands, the associations have sought a review of the 15-day advance notice requirement for selling shares purchased from the secondary market, arguing that ordinary investors should be able to sell their legally acquired shares without unnecessary restrictions. For large promoter or strategic investor transactions exceeding 5% of shares, they have proposed retaining advance notice while reducing the notice period for promoter share sales from 15 days to seven days. They have also recommended separate offer-for-sale or block trading mechanisms for large transactions. The associations have further called for risk-based margin trading standards, consistent adjustment and cost calculation of bonus and rights shares between NEPSE and CDSC, and a gradual move toward a T+1 or shorter settlement system through greater automation and coordination among market institutions. They have also urged SEBON to undertake broader regulatory reforms in consultation with NEPSE, CDSC, Nepal Rastra Bank, brokers, listed companies and investor representatives, with the six proposals studied on a priority basis before practical reforms are introduced.