SEBON Sets 10-Year Vision to Strengthen Capital Market

The Securities Board of Nepal (SEBON) has unveiled the Capital Market Development Roadmap 2083, a 10-year strategic plan aimed at transforming Nepal’s capital market into the country’s second major pillar of economic development after the banking sector. Announcing the roadmap on Tuesday night, SEBON Chairman Dr. Gopal Prasad Bhatt said the plan focuses on structural reforms, market diversification, digital transformation, and internationalization to strengthen the country's financial system over the next decade. Under the roadmap, SEBON aims to increase the average daily stock market turnover from around Rs. 8 billion to Rs. 30 billion by 2036, raise the market capitalization-to-GDP ratio to over 150%, and expand the number of listed companies to more than 500, including over 200 small and medium-sized enterprises (SMEs). The plan also seeks to significantly increase the number of Demat accounts and broaden public participation in the capital market. SEBON acknowledged that Nepal’s stock market remains heavily concentrated, with banks and financial institutions accounting for 45% of market capitalization and the hydropower sector contributing another 35%, leaving other productive sectors underrepresented. The roadmap prioritizes greater participation from manufacturing, agriculture, information technology, and service industries while promoting alternative investment instruments such as corporate bonds, derivatives, commodities, and Real Estate Investment Trusts (REITs). The roadmap will be implemented in three phases. The first phase (2026–2027) will focus on legal and policy reforms, followed by market expansion and digital transformation during 2028–2030. The final phase (2031–2036) envisions opening Nepal’s capital market to foreign portfolio investors and fully integrating it with international capital markets. SEBON believes the reforms will help build a more diversified, transparent, and globally competitive capital market that supports Nepal’s long-term economic growth.