Kathmandu. Securities Board of Nepal (SEBON) has held discussions with various government investment institutions to strengthen the role of institutional investors in the capital market.

As per the policy and programme for the fiscal year 2083/84, the Board has committed to make necessary policy and regulatory facilitation by giving special priority to the expansion of participation of institutional investors.

Significant participation of institutional investors in the developed capital markets of the world has contributed to the stability of the market, liquidity, price discovery and development of prudent investment culture. Although the participation of individual (retail investors) has increased significantly in Nepal, the role of institutional investors is still relatively limited.

The Board has concluded that active, diversified and responsible participation of institutional investors is necessary for long-term financial resource mobilization, stability of the market, liquidity, good governance and development of a balanced and sustainable financial system.

In the presence of Board Chairman Dr. Gopal Prasad Bhatta, a discussion was held with the high-ranking officials of the Insurance Authority, Employees Provident Fund, Citizen Investment Trust, Social Security Fund and Insurance Company regarding the approval of investment of the insurance company.

During the discussions, the representatives of the bodies concerned presented the current investment situation, the challenges seen and the need for improvement and facilitation.

Chairman Bhatta pointed out the need for the institutional investors to move away from traditional investment approach and adopt ‘smart investment’ approach and play more effective role in the stability of capital market. He also assured that the Board was ready to make necessary policy and regulatory facilitation for the expansion of investment of such institutions in the capital market in the coming days.