Kathmandu. The Securities Board of Nepal (SEBON) has set a target to make the Nepal Stock Exchange (NEPSE) a well-governed, competitive, technology-friendly, innovation-oriented and in line with international standards.

As mentioned in the budget statement of the government for the fiscal year 2083/84, NEPSE will carry out a comprehensive review of its institutional restructuring, good governance and operating system and facilitate it to enhance its competitive capacity.

The government’s policy and programme states that high priority would be given to corporate governance by further strengthening ownership structure, professionalism, independence and accountability of Board of Directors as per international good practices.

It is stated that if necessary for the long-term development of NEPSE, the options for strategic partnership, capital structure improvement and modernization of management system would be studied in a phased manner and appropriate reform process would be initiated.

It is stated that the transaction system will be made high-capacity, secure and based on international standard technology and the infrastructure will be developed that can easily manage a large number of transactions.

Integration of transaction, monitoring, risk management and information flow systems will be strengthened to conduct real time market operations and analysis, cybersecurity, system continuity and disaster management system will be strengthened in line with international standards.

NEPSE will be developed as a multi-dimensional market for trading of corporate bonds, government bonds, municipal bonds, green bonds, infrastructure bonds, exchange traded funds, real estate investment trusts, invites and derivative financial instruments in a phased manner. For this, the development of necessary legal, technical and institutional infrastructures would be given priority.

In order to increase liquidity in the market, internationally accepted market mechanisms including market makers, authorized participants, securities lending and loan, intraday, short selling will be studied, tested and implemented in a phased manner.

In order to make the NEPSE index in line with the established international standards, it is stated that the rules of circuit breaker will be reviewed on the basis of the current index calculation, a new index will be developed on the basis of tradable shares and it will be used as a benchmark index.

Similarly, diversification of the NEPSE index (such as NEPSE 30, NEPSE High Cap) on the basis of capital, return, liquidity, operation of SMEs platform, classification of listed institutions will be made objective, and arrangements will be made for trading in the second market of securities through a mobile app.

The Board has also teased the Non-Resident Nepalis in its policy and programs for the coming fiscal year.

Although the Board has not been able to do anything, it has not excluded Non-Resident Nepalis in its policies and programs. In the policy of the next year

Necessary mechanism would be put in place to include Non-Resident Nepalis in the secondary market of securities.

Similarly, by making the listing policy more practical, transparent and production-oriented, capable companies in production, information technology, agribusiness, tourism, energy, health, education and innovative industries will be encouraged to enter the capital market.

NEPSE will collaborate with international stock exchanges, technical partners and regional capital market organizations with the long-term goal of developing NEPSE into a modern financial market that can compete with emerging capital markets of South Asia.

Necessary policy and institutional reforms will be carried out to establish Nepal Stock Exchange as a major financial infrastructure institution for national economic development by enhancing the credibility, transparency and confidence of the investors.