Kathmandu. The Securities Board of Nepal (SEBON) has come up with a three-phase reform strategy for the overall development of the capital market, including primary and secondary markets. Chairman of the Securities Board Dr. Gopal Prasad Bhatta said in the meeting of the parliamentary committee that policy reforms, infrastructure development and institutional strengthening will be prioritized and the participation of market stakeholders will be improved.

The board has formed separate committees for primary and secondary market reforms. The committee includes representatives from NEPSE, CDS and Clearing, Federation of Nepalese Chambers of Commerce and Industry and Merchant Bankers Association. For reform, the process of first preparing a concept paper, discussing it in the committee, holding public consultation and then implementing the policy will be followed.

According to the Board, policies related to IPO issuance, price discovery, qualified institutional investors and share allotment system have been prepared and will be implemented gradually.

In the second market, the restructuring of the broker institution has been given priority. The policy has been taken to develop the broker from the limited structure of the family business to the ‘industrial’ model. On the basis of performance and service, the broker will be divided into four categories and the broker will be taken to a broader structure including stock dealership.

Similarly, improving the technical capacity, order management and cyber security of the Nepal Stock Exchange (NEPSE) has also been prioritized. Bhatta said that about 31-32 new regulations have been prepared for NEPSE and they will be issued soon.