सेबोनको सुझाव आह्वानपछि लगानीकर्ताको कडा आवाज: उठे बजार सुधारका गहिरा मागInvestors React Strongly to SEBON’s Call for Suggestions: Detailed Reform Demands Surface from Market Participants

Following the Nepal Securities Board (SEBON)’s call for policy and program suggestions for the fiscal year 2083/84, investors have actively responded on social media, presenting a wide range of concerns and reform proposals. The comments posted under SEBON’s official Facebook notice reveal deep-rooted structural issues in Nepal’s capital market, along with clear expectations for transparency, efficiency, and modernization.

Investor Ambika Prasad Paudel emphasized the need to reform the IPO system itself. According to him, except for shares that must be legally restricted (such as those pledged to banks or held by directors), all IPO shares should be freely tradable from the very first day of listing. He argued that such a move alone could resolve a significant portion of existing market problems. Paudel also pointed out that inefficiencies in IPO issuance software and the lack of clear standard operating procedures (SOPs) are at the core of many systemic issues.

Similarly, Arjun Dahal raised several practical concerns related to everyday trading experiences. He highlighted that investors often do not receive their money on time after selling shares and called for strict action against illegal margin or credit-based trading. Dahal also demanded insurance coverage for funds held in broker accounts. He further suggested that new investors should be provided with detailed guidelines covering trading procedures, commissions, settlement systems, and risks at the time of account opening. His recommendations also included enabling intraday trading (buying and selling on the same day), automating the EDIS system, ensuring dividends are credited directly to broker accounts with proper records, implementing automatic average cost calculations, and notifying shareholders about rights issues via SMS or email. He also proposed allowing investors to vote in company director elections through the MeroShare or online systems.

On a more structural level, Raj Kumar Panday proposed a radical shift in share trading rules. He argued that all shares—both promoter and public—should be freely tradable from the day of IPO issuance. According to him, the concept of promoter share lock-in periods should be eliminated entirely, allowing the market to determine prices freely. His “no locking period” stance reflects a push toward a fully liberalized and competitive market environment.

One of the most detailed and critical responses came from Bhaskar Chhetri, who called for sweeping institutional reforms. He demanded a thorough investigation into all past irregularities within SEBON and the Nepal Stock Exchange (NEPSE), along with accountability measures. Chhetri also suggested that current employees of these institutions should take moral responsibility and resign collectively. He further proposed making it mandatory for companies to maintain at least 30% promoter shareholding, abolishing the IPO quota system, and shortening the settlement cycle from T+2 to T+1.

Chhetri strongly raised concerns about insider networks and information leakage within the system. He alleged that sensitive trading information is often leaked through brokers and even from within NEPSE itself. To address this, he called for stronger legal frameworks, enhanced technological safeguards, and strict enforcement mechanisms. He also emphasized the need to upgrade the Trading Management System (TMS), properly structure volatility control tools such as circuit breakers and trading halts, regulate unnecessary rights share issuance, and establish a separate judicial body dedicated to investor protection.

Meanwhile, Keshab Koirala focused on improving the quality and prioritization of IPOs. He advocated for mandatory implementation of the book-building system and prioritizing productive and export-oriented companies in IPO approvals. He also criticized the misuse of funds raised under pre-IPO schemes and suggested banning such companies from entering the IPO market. Additionally, he called for stricter regulation of rights share issuance and making most promoter shares tradable from the early stage of listing.

Addressing market behavior, Ramkrishna Gajurel pointed out that IPOs often fail to benefit genuine investors, as intermediaries and brokers tend to capture most of the gains. According to him, this imbalance reduces fairness and discourages retail investor participation.

Similarly, Nayan Bastola hinted at structural bias within the system, suggesting that regulatory frameworks tend to protect influential players while smaller investors are left vulnerable. This perception, he indicated, is weakening overall trust in the market.

On the regulatory side, Hari Prasad Pandit stressed the need to control price manipulation in premium IPOs, fully automate the EDIS system, eliminate illegal credit trading, and improve the average cost calculation mechanism. He also strongly advocated for strict enforcement against insider trading, calling for severe penalties for those involved.

Overall, SEBON’s initiative to gather suggestions has brought forward a comprehensive picture of investor sentiment. While individual opinions vary, there is a clear consensus on the need for deeper structural reforms rather than superficial changes. If these recommendations are carefully studied and incorporated into policy, they could significantly enhance the transparency, efficiency, and long-term credibility of Nepal’s capital market.