Kathmandu. Securities Board of Nepal (SEBON) has released the ‘Nepal’s Capital Market Development Guide-2083’. The roadmap presents the capital market as the main engine of economic transformation.
The roadmap states that a strong, transparent and effective financial system is essential for the sustainable economic development of any country. “There is a close relationship between economic growth and capital markets. “Although the banks mainly support economic activities through short-term and medium-term loans, the role of capital market is very important for long-term investment, industrialization, infrastructure development, innovation, entrepreneurship and expansion of productive sector,” the roadmap states. ’
The World Bank, the International Monetary Fund, the Organisation for Economic Co-operation and Development (OECD), among others, have accepted the developed capital market as the basic infrastructure for high economic growth, capital formation, productivity growth and investment expansion. The capital market is one of the most effective means of mobilizing long-term financial resources, especially in the context of intensifying global economic competition.
The capital market is portrayed as a mirror of the economy. From this, one can guess the role of the capital market in the overall economy. The capital market is one of the main sources of providing the necessary financial capital to achieve high economic growth.
As Nepal aims to become a middle-income country by graduating from a low-income country, a huge amount of long-term capital will be required for the country’s industrialization, energy development, infrastructure expansion, green economy, digital transformation and job creation. The development of capital market should be taken as the central strategy of national economic transformation as the management of such capital is not possible only through the banking system.
Nepal Future Capital Markets in the Roadmap
SEBON has set a target to develop Nepal’s capital market as a system with the following characteristics by 2036 under the capital market development perspective.
- Transparent and Responsive
- Technology-friendly and digital
- Investor-friendly and secure
- Multi-financial instruments
- Based on institutional investment
- Promoting ESG and Sustainable Finance
- Supporting private sector development
- The key financial infrastructure of national economic transformation.
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Click here to view the full Capital Markets Development Roadmap {{TAG_OPEN_a_28}Scanned Image.
