Kathmandu. The Securities Board of Nepal (SEBON) has released the Institutional Investor Policy, 2083 with the objective of increasing the active and responsible participation of institutional investors in the capital market of Nepal. The board has sought constructive opinions and suggestions from the stakeholders on the proposed policy.

According to the Board, the policy has been made public in line with the guidelines of the Capital Market Development Roadmap of Nepal, 2083 BS, Capital Market Policy of FY 2083/84 and Capital Market Strengthening and Revitalization Action Plan, 2083 announced by the Ministry of Finance, Government of Nepal on September 12, 2083.

The proposed policy aims to make the entry and operation of institutional investors in the primary and secondary securities market easy, uniform, clear and responsible. For this, necessary policy, institutional and procedural provisions have been proposed.

The policy includes provisions related to classification and registration of institutional investors, investment diversification, use of financial instruments, determination of investment limits, good governance, risk management, market conduct, disclosure of information, regulatory monitoring and phased implementation. In addition, the concept of legal and regulatory reforms and coordination among the concerned bodies has also been proposed to expand the participation of institutional investors.

The Board has also expressed the expectation that increasing the long-term participation of professional and competent institutional investors in the capital market of Nepal, which is dominated by individual investors, will increase the market depth, liquidity, transparency and stability.

The Board believes that the proposed policy will help develop the overall capital market as a balanced and sustainable financial system by systematizing the entry and operation of institutional investors.