Stronger Surveillance and New Instruments Crucial for Market Stability: MBAN President Rayamajhi

Kathmandu — Regulatory bodies must tighten their surveillance mechanisms to control unnatural fluctuations in the capital market, stakeholders have emphasized. Ramendra Rayamajhi, President of the Merchant Bankers Association of Nepal (MBAN), stated that expanding the participation of institutional investors and introducing new financial instruments for risk management are indispensable for a sustainable and stable market.

Speaking at the 'Nepal Capital Market Discourse 2026' organized by Banking Samachar in Kathmandu, Rayamajhi expressed concern over the wipeout of approximately Rs 300 billion in market capitalization over just the last two to three months. He pointed out that timely interventions could have prevented such massive losses. To systematically stabilize the market, he proposed three immediate reform agendas: enhancing effective regulatory monitoring, introducing modern financial tools such as hedging to mitigate risks, and significantly boosting the presence of institutional investors.

Citing the rapid structural and regulatory reforms India implemented following its 1992 capital market crisis, Rayamajhi urged Nepal to take similarly decisive and time-bound measures. Highlighting the immense expectations investors have from the current stable government and the new leadership at the Securities Board of Nepal (SEBON), he pledged that merchant bankers are fully prepared to collaborate in executing the regulator's proposed 10-year development roadmap.

Rayamajhi further stressed that outdated and traditional laws can no longer address the dynamic needs of the modern capital market, calling for immediate structural and policy amendments. Additionally, he emphasized the urgency of adopting progressive policies and technology-driven practices to attract foreign investment and promote Environmental, Social, and Governance (ESG) based investments.