The government has announced to develop the capital market in a safe, transparent and competitive manner. For this, the Securities Board of Nepal (SEBON), Nepal Stock Exchange (NEPSE) and CDS and Clearing system will be completely restructured. The government believes that the structural reforms of these agencies will increase the efficiency of the market and strengthen investor confidence.
The government has adopted a policy to increase the participation of institutional investors to expand the scope of capital market. The government will facilitate pension funds, insurance companies, mutual funds so that they can play active role in the market. The government has put forward a plan to expand the participation of 'Non-Resident Nepalese (NRN)' in the capital market, especially targeting the Nepalese living abroad. This will help to bring foreign currency into the market and make the market more dynamic.
The government aims to develop the debt market and bond market for long-term capital formation, not just stock trading. It has been announced that 'Infrastructure Bond' will be developed to raise necessary investment for infrastructure development and 'Risk Management Tools' will be developed to reduce the risk of investment.
Likewise, alternative finance and diaspora capital would be mobilized to adopt a new model for infrastructure financing. The government plans to take these steps to attract private sector investment in infrastructure and to facilitate financial management of large projects.
