Key Highlights of the Proposed Bill:

• Clear Jurisdictional Boundaries: The bill amends Section 17 to draw a distinct line between the Securities Board of Nepal (SEBON) and the Investment Board Nepal (IBN). SEBON will manage institutional foreign investments via the stock exchange, while the Investment Board will handle Public-Private Partnership (PPP) projects valued at Rs 6 billion or more, ending years of inter-agency confusion.
• Conversion of Loans into Shares: For the first time, foreign investors will be legally permitted to convert foreign loans and accumulated interest into equity shares. This mechanism bypasses the cumbersome process of repatriating funds abroad only to bring them back as new investments, thereby saving foreign exchange and retaining capital locally.
• Broader Scope for Global Capital: Section 12 expands the definition of foreign financial sources to include venture capital, private equity funds, and sovereign wealth funds. Additionally, project financing is now legally defined as any financial arrangement extending for one year or more.
• Special Provisions for NRNs: Non-Resident Nepalis (NRNs) are granted wider investment avenues. The government can now permit NRN investments in previously restricted sectors through a simple notification in the Nepal Gazette.
• Full Digitization via One-Stop Service: Article 23 proposes a fully integrated digital system through the Department of Industry's One-Stop Service Centre, enabling online applications, digital signatures, and end-to-end transparent approvals.