Securities Board of Nepal Receives 22-Point Demand from Investors

The Securities Board of Nepal (SEBON) has pledged to immediately move forward with reforms and expansion in favor of secondary market investors. On Sunday, a delegation led by investor Tilak Koirala submitted a 22-point demand letter to SEBON Chairman Santosh Narayan Shrestha, who assured that the problems of the secondary market would be addressed.

Chairman Shrestha emphasized that the secondary market remains his first priority. He said, “From the beginning, my view has been that the secondary market must come first. Especially the challenges faced by small investors cannot be ignored. While authorized and issuing companies also require capital mobilization, there must be a balance between these two aspects.”

Key Demands of Investors

The 22-point demand letter submitted by investors highlights several key points:

• Founders’ shareholding in all listed companies should be maintained at 51 percent.

• Margin trading through brokers should be initiated immediately.

• New IPOs should be halted until legal arrangements regarding founders’ shareholding are finalized.

• Participation of institutional investors should be increased in both primary and secondary markets.

• Book building should be made mandatory in all IPOs.

SEBON Chairman’s Response

Shrestha stated that he has always prioritized the interests of investors. “I am equally concerned about the issues you have raised. Not only investors, but I also understand the needs of companies. Therefore, moving ahead with a balance between both sides is necessary,” he noted.

Investors have warned that failure to fulfill their demands could lead to an unprecedented crisis in the capital market. According to them, more than 7 million investors, 93 brokerage firms, dozens of merchant bankers, the government, and other stakeholders would face severe consequences.