SEBON Unveils Ambitious 10-Year Capital Market Roadmap (2026–2036) for Structural Transformation

The roadmap relies on three core pillars: linking the capital market to productive economic sectors, attracting foreign investment, and leveraging advanced technology for investor protection.

The targets and timeline for the 10-year reform plan are structured as follows:

The Immediate Term: FY 2083/84 (2026) – Structural Reforms

Dubbed the "Year of Structural Reforms and Institutional Strengthening," the current fiscal year focuses on immediate operational overhauls:

Legal Overhaul: Replacing the Securities Act, 2063, with two distinct legislations—the Securities Market Management Act and the Crime and Punishment Act—to heavily penalize market manipulators.
Market Inclusivity: The launch of a dedicated SME Platform on the Nepal Stock Exchange (NEPSE) to help small businesses raise capital, alongside completing legal framework setups to allow Non-Resident Nepalese (NRNs) into the secondary market.
Tech-Driven Surveillance: Introduction of an Artificial Intelligence (AI)-based Market Surveillance System to actively track and prevent insider trading and cornering.

The 10-Year Phased Transformation Plan (2026–2036)

The roadmap divides the next decade into three distinct operational horizons:

Phase I: Foundation Construction (2026–2027)

The initial two years are dedicated to reinforcing the structural architecture of the market.

Institutional Restructuring: Overhauling the ownership structures of NEPSE and the Central Depository Services and Instruments (CDSC) to enhance corporate professionalism.
Debt Market Activation: Institutionalizing the issuance of 'Infrastructure Bonds' and 'Green Bonds' to fund large-scale national projects.
Grassroots Awareness: Launching the National Investor Education Campaign to expand stock market literacy beyond urban centers into rural villages.

Phase II: Expansion and Modernization (2028–2030)

This three-year period focuses on diversifying market instruments and boosting liquidity through institutional participation.

New Investment Vehicles: Introduction of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), alongside public Exchange Traded Funds (ETFs).
Activating Market Makers: Empowering massive institutional funds—such as the Employees Provident Fund, Citizen Investment Trust, and commercial insurance companies—to act as official market makers to stabilize trading.

Phase III: Internationalization & Fully Digital Markets (2031–2036)

The final five years aim to integrate Nepal's financial markets with the global ecosystem.

Derivatives Trading: Fully launching futures and options trading across commodities and securities.
Global Connectivity: Enabling cross-border listings, allowing Nepali firms to list abroad and foreign entities to trade in Nepal.
T+0 Settlement: Transitioning to a completely paperless, contactless, and digital ecosystem targeting immediate (T+0) settlement by 2036.

Macro Targets by 2036

SEBON has anchored the roadmap against highly ambitious macroeconomic benchmarks to be achieved by the close of the 10-year cycle:

Market Cap to GDP: Targeting an increase from the current 70–80% up to 150%.
Listed Entities: Scaling the number of listed companies past 500, intentionally diversifying into manufacturing and commercial industries outside of traditional banking and hydro sectors.
Market Reach: Expanding the number of Demat accounts to 12 million (covering roughly half of Nepal's population).
Trading Volumes: Driving average daily turnover beyond Rs. 30 billion.
Specialized Boards: Graduating the initial SME platform into an independent, relaxed SME Exchange, alongside creating a Startup Board to connect venture capital with local innovators.

Implementation Challenges

While widely praised by market observers, analysts note that the roadmap's success hinges on overcoming significant hurdles. Among them, main challenges are maintaining long-term political stability and policy continuity across changing government administrations, alongside upgrading national cyber security infrastructure to safeguard a completely digitalized financial ecosystem.