Nepal’s push for a second stock exchange has gained momentum. A government-formed committee led by NRB board member Chintamani Siwakoti submitted a report recommending both: restructure the existing NEPSE and allow new exchanges.
The committee was given the mandate in January 2024 and submitted its report by May. It concluded that waiting for NEPSE’s reform could delay progress for another 15 years — as past attempts have already failed. Hence, the report suggests that a new stock exchange can be licensed immediately without waiting for NEPSE‘s overhaul.
NEPSE’s restructuring has long been on paper, but no concrete steps have been taken. The committee pointed out that political indecision and lack of capital restructuring are the main roadblocks.
To address this, the Securities Board (SEBON) has begun implementing the committee’s recommendations. SEBON has instructed NEPSE to prepare for the issuance of 30% of its shares to the public. However, NEPSE officials say that won’t be possible unless the government decides on a capital increase.
Applications for the new exchange are already under review. Himalayan Stock Exchange, Annapurna Stock Exchange, and National Stock Exchange have all applied. The one scoring the highest in criteria — such as tech infrastructure, clearing systems, and expansion strategy — will get the license.
SEBON’s internal discussions confirm that there’s no strong opposition to issuing a new license. The key issue now is completing the evaluation process.
