Kathmandu. A stock investor has submitted 100-point suggestions to the Securities and Exchange Board of Nepal (SEBON) for the reform and strengthening of Nepal's capital market. Investor Aditya Poudel has submitted suggestions demanding a phased reform of Nepal's capital market.

He has said that it is necessary to make Nepal's stock market more transparent, stable, reliable and in line with international standards. The 100-point suggestions submitted have been prepared with the aim of long-term development of the capital market, increasing investor confidence, market transparency, technological improvement and attracting foreign investment.

The suggestions submitted include strengthening the capacity, stability and cyber security of the online trading system (TMS), reducing capital gains tax from 7.5 percent to 5 percent, making at least 10 percent quota mandatory in student IPOs, implementing a market maker system in the market, expanding the limit of margin financing, developing a collateralized loan system, making mutual fund and portfolio details available online, developing a green bond market, developing an AI-based portfolio advisory system and operating an investor digital education program.

There are suggestions such as allowing NRNs to invest in the Nepali stock market, implementing an FPI system, developing hedging tools to control foreign exchange risk, developing a risk assessment system for institutional investors, and operating a market transparency digital dashboard.

100-point recommendations presented in stages:

Step 1: Immediate implementation reforms (1-20)

1. Strengthen the Investor Compensation Fund. 2. Make the IPO distribution system fully automated and transparent.

3. Improve the Market Circuit Breaker system to control excessive volatility.

4. Make at least 101 quotas mandatory for students in IPOs.

5. Strictly implement the system for publishing financial statements of listed companies on time.

6. Strengthen the capacity, stability and cyber security of the online trading system (TMS).

7. Implement strict regulations to prevent rumors and price manipulation in the market.

8. Implement a real-time market surveillance system.

9. Reduce capital gains tax from 7.54 to 54.

10. Implement an automatic dividend distribution system.

11. Develop a system for derivatives trading, intraday trading, short selling.

12. Establish an independent commission to investigate corruption and irregularities in the capital market. 13. Implement a certification system for mobile trading apps.

14. Ensure data security and redundancy in cloud systems.

15. Collect investor feedback through an online system.

16. Arrange for a share investor identity card.

17. Implement a clear delisting policy for companies that violate the rules.

Phase 2: Short-term reforms (21-40)
(Improving trading systems and market structure)

21. Implement an AI system to identify trade anomalies. 22. Publish an Investor Confidence Index.

23. Ensure equal treatment of all companies in the Margin Call system. 24. Expand the limit of Margin Financing.

25. Implement a Market Maker system in the market.

26. Review and reduce broker commission rates.

27. Develop sectoral indexes including banking, insurance, hydropower, etc.

28. Implement an Auction Share Online system. 29. Implement Digital KYC Real-time system. 30. Implement Digital Voting system in AGM. 31. Expand Securities Lending facility. 32. Develop Collateralized Loan system.

33. Develop Repo and Reverse Repo digital platform.

34. Standardize investor portfolio details.

35. Publish Mutual Fund and Portfolio details online.

36. Implement Corporate Governance Rating system.

37. Establish Cross-Investment Transparency Portal. 38. Develop Investor Risk Scoring system.

39. Conduct Investor Feedback Survey online.

40. Organize Quarterly Virtual Investor Workshop.

Phase 3: Market Expansion and New Investment Opportunities (41-60)

41. Operate Mobile Alert System to Provide Market Information to Investors.

42. Launch Investment Instruments like ETF and Index Fund.

43. Strengthen SME Market.

44. Develop Green Bond Market.

45. Develop Infrastructure Bond Market.

46. ​​Promote alternative investment opportunities.

47. Use market research reports in policy formulation.

48. Conduct Market Crisis Simulation exercises.

49. Implement annual technology upgrade roadmap. 50. Establish a Capital Market Research and Development Department.

51. Develop an AI-based portfolio advisory system.

52. Expand the Automated Surveillance AI system.

53. Develop a Blockchain-based share registration system.

54. Implement cross-platform trading API integration.

55. Operate an online chatbot service to assist investors. 56. Operate an investor digital education program.

57. Organize regional investor workshops.

58. Operate a financial literacy program at school and college levels.

59. Expand access to rural and semi-urban investors.

60. Promote ESG (Environment, Social, Governance) based investment.

Phase 4: International Investment and Market Integration (61 - 80)

61. Allow NRNs to invest in Nepal's stock market.

62.. Implement FPI (Foreign Portfolio Investment) system.

63. Implement FII (Foreign Institutional Investor) system.

64. Provide tax incentives to foreign investors.

65. Implement a smooth onboarding system for NRNs and foreign investors.

66. Provide international custodian services.

67. Develop a cross-border settlement system.

68. Develop hedging tools to control foreign exchange risk.

69. Improve the regulatory system according to international market practices.

70. Develop a trading framework according to international standards.

71. For investor identification. Implement Digital Identity Integration. 72. Operate a Global Investor Outreach Program.

73. Develop a risk assessment system for institutional investors.

74. Develop a Corporate Disclosure Automation system.

75. Operate a Market Transparency Digital Dashboard.

76. Establish a Regulatory Sandbox for Fintech Innovation. 77. Develop Advanced Trading Infrastructure.

78. Develop Cross-border Data Exchange Protocol.

79. Develop Collaboration Framework for collaboration with international markets.

80. Conduct a feasibility study on Global Listing Access.

Phase 5: Long-term strategic reforms (81 - 100)
81. Establish National Investor Protection Authority.

82. Implement One-Window Coordination System for capital markets.

83. Strengthen coordination system between SEBON, NEPSE and CDSC.

84. Develop SME Financing Ecosystem.

85. Introduce a policy to encourage banks and financial institutions to invest in the market.

86. Expand the limit of Share Loan through banks.

87. Provide tax concessions for long-term investments.

88. Develop a government support policy for market stability.

89. Review trading hours according to global standards.

90. Make the Auction Share system completely digital.

91. Make the IPO process completely digital and transparent.

92. Improve the investor grievance redressal system.

93. Establish a transparency portal for listed companies.

94. Develop a Digital Governance Framework for the capital market. 95. Implement a Smart Regulation Framework.

96. Establish a Capital Market Innovation Lab.

97. Develop a Market Data Analytics Platform.

98. Establish a Capital Market Think Tank.

99. Implement a continuous innovation policy to improve capital market technology. 100. Prepare a long-term sustainable capital market development strategy.