KATHMANDU, Oct 31: The Securities Board of Nepal (SEBON), in a bid to diversify and expand instruments of Nepal’s capital market, has formed a seven-member committee to develop and implement new financial instruments.
The committee led by Deepa Dahal, acting executive director of the SEBON, includes representatives from Nepal Rastra Bank, the Nepal Stock Exchange (NEPSE) and the Merchant Bankers’ Association of Nepal.
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The sector’s regulator has mandated the panel to develop the necessary legal, technical, and institutional infrastructure to expand the range of financial instruments traded in the capital market, thereby reducing the current over-reliance on equity (share) trading.
The committee has been tasked with studying the development of various financial instruments such as corporate bonds, government bonds, municipal bonds, green bonds, infrastructure bonds, Exchange-Traded Funds (ETFs), Real Estate Investment Trusts (REITs), and Infrastructure Investment Trusts (InvITs) within Nepal's securities market, and subsequently advancing the process for their implementation.
Similarly, the committee’s scope includes exploring the possibility of introducing derivative financial instruments in a phased manner. This entails studying the necessary market structure and infrastructure for the development and operation of instruments such as commodity futures and currency derivatives.
The ‘Capital Market Development Roadmap of Nepal, 2026,’ released by the SEBON, also prioritizes market depth and diversification. The roadmap outlines a plan for the phased development of various segments, including the corporate bond market, green bonds, municipal bonds, ETFs (Exchange-Traded Funds), REITs (Real Estate Investment Trusts), InvITs (Infrastructure Investment Trusts), and the derivatives market.
