Government Initiates Restructuring of Nepal Stock Exchange; High-Level Committee Formed

The Government of Nepal has officially initiated the process of restructuring the Nepal Stock Exchange (NEPSE), aiming to modernize its structure, strengthen its operational framework, and enhance transparency and competitiveness. The move is seen as a significant step toward addressing long-standing demands for stock market reform and improving the overall governance of the capital market.

According to the decision made during the Cabinet meeting held on Tuesday at Singha Durbar, the government has formed a high-level study and recommendation committee under the leadership of Prajanjung KC. The committee has been tasked with reviewing NEPSE’s current structure, operational systems, regulatory effectiveness, and institutional efficiency. The government stated that the initiative follows increasing calls for restructuring NEPSE, expanding the market, integrating new technologies, and strengthening regulatory and managerial frameworks.

With the formation of the committee, a comprehensive study will now begin, focusing on NEPSE’s institutional model, technical capacity, ownership structure, and governance system. The committee will also examine possibilities for restructuring NEPSE in line with international best practices, regional stock exchange models, and modern technological standards used in global capital markets.

The government believes that this restructuring effort could help overcome the structural weaknesses seen in the Nepali stock market, including operational delays, regulatory gaps, outdated trading systems, and limited innovation. The initiative also aims to create a more investor-friendly ecosystem and prepare NEPSE for future market expansions, including broader product offerings and digital integration.

Officials said that once the study is completed, the committee will submit a detailed report outlining recommendations for NEPSE’s long-term institutional reform. This is expected to set the foundation for a modern, transparent, and competitive capital market in Nepal, aligning it with global standards and improving investor confidence.