Dr. Bishwo Paudel Appointed as NRB Governor, Signals Priority for Stock Market Reform

With the appointment of Dr. Bishwo Paudel as the 18th Governor of Nepal Rastra Bank (NRB), hopes are rising for a new wave of reform in Nepal’s capital market. His early signals suggest a shift in regulatory tone—aimed at stabilizing and revitalizing the Nepal Stock Exchange (NEPSE).

Stock Market Development a Top Agenda
Dr. Paudel has identified NEPSE as a core pillar of Nepal’s economy and emphasized that capital market growth will be among his top policy priorities. Sources close to the matter say he intends to build a more structured and investor-friendly market environment.

"Less Regulation, More Supervision" Approach
Unlike conventional regulators, Paudel is pushing for a “less regulation, more supervision” model. This means relaxing overly restrictive rules while tightening oversight to maintain transparency and discipline—without stifling natural market momentum.

Rebuilding Investor Confidence
Investor morale is another area Dr. Paudel has vowed to address. He plans to introduce measures to improve transparency, ease access to capital markets, and create a more business-friendly ecosystem, which could help boost retail and institutional participation.

Focus on Attracting Foreign Investment
Having previously worked with global institutions like the World Bank and IMF, Paudel is seen as well-positioned to attract foreign capital. His focus on macroeconomic stability is expected to build trust among foreign investors and contribute to NEPSE’s long-term stability.

Legal and Political Uncertainty Looms
Despite the optimism, challenges remain. His appointment has faced criticism for alleged political favoritism and is currently under legal scrutiny at the Supreme Court. Combined with broader issues like weak fiscal health, slow revenue growth, and persistent inflation, Paudel’s policy space may be narrower than it seems.

Dr. Paudel’s appointment is being welcomed by the capital market community, but the coming months will be crucial. His success will largely depend on how effectively he can navigate political hurdles, economic volatility, and execute timely market reforms.