Government to Launch Bond Secondary Market, Make National ID Mandatory for Financial Transactions; 30% of Nepal Telecom Shares to Be Offered to Public

The Government of Nepal has announced a series of major reforms aimed at strengthening the capital market and financial system in the fiscal year 2082/83.

Presenting the national budget, Finance Minister Bishnu Prasad Paudel announced the following key measures:

Key Announcements:

• A secondary market for government bonds will be introduced, allowing investors to buy and sell bonds more freely, improving market liquidity.

• National Identity Cards will be mandatory for all types of financial transactions, to enhance security, transparency, and accountability in the financial system.

• 30% of shares of Nepal Telecom (NTC) will be offered to the general public, providing citizens an opportunity to invest in a state-owned enterprise.

• Non-Resident Nepalis (NRNs) will be allowed to participate in secondary market trading, helping to attract foreign capital into Nepal’s capital market.

• A cybersecurity insurance scheme will be introduced to protect digital transactions and financial systems from cyber threats.

• A Neo Bank (fully digital bank) will be established to make banking services more accessible, efficient, and tech-driven.

• The Nepal Stock Exchange (NEPSE) will undergo restructuring to enhance market capacity, efficiency, and transparency.

• An Asset Management Company will be set up to manage mutual funds and investor portfolios, supporting long-term investment growth.

These reforms are expected to expand financial inclusion, strengthen investor confidence, attract foreign investment, and promote digitization and transparency in Nepal’s financial sector.