KATHMANDU, Jan 12: A government-appointed committee tasked with restructuring the Nepal Stock Exchange (NEPSE) has completed its study and is set to submit its report to Finance Minister Rameshore Khanal.
The panel, led by former Accounting Standards Board chair Prakash Jung Thapa, has outlined reform measures to be implemented in the short, medium, and long term. The five-member committee includes former Securities Board of Nepal (SEBON) executive director Niraj Giri, along with representatives from SEBON, NEPSE, and Nepal Rastra Bank.
The report was formally registered with the Ministry of Finance on Friday and will be presented to the finance minister on Monday. According to committee sources, key recommendations include issuing an initial public offering (IPO) of NEPSE shares, increasing paid-up capital, and bringing in a foreign strategic partner.
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The committee has proposed raising NEPSE’s paid-up capital to Rs 3 billion and restructuring the exchange along models adopted by regional peers such as India, Bangladesh, and Pakistan. Public share issuance and alternative investment instruments have been suggested as part of the reform process.
“At every stage—immediate, medium-term, and long-term—we have proposed clear reform options,” a committee source said. “These include increasing capital, offering shares to the public, and attracting a foreign strategic investor.”
Currently, NEPSE has paid-up capital of Rs 1 billion, with the government holding 58.66 percent ownership. Other major shareholders include Rastriya Banijya Bank (11.23 percent), Employees Provident Fund (10 percent), Nepal Rastra Bank (9.5 percent), and Laxmi Sunrise Bank and Prabhu Bank with five percent each.
NEPSE management had earlier proposed raising capital to Rs3 billion, floating a 30 percent IPO, onboarding a foreign partner, and seeking additional investment from institutional shareholders. The newly completed report evaluates and builds upon those proposals.
The study committee was formed following a cabinet decision, based on a proposal from Finance Minister Khanal, and was given 50 days to submit recommendations. The move follows multiple earlier reform suggestions, including one from a government task force on capital market reforms that called for fast-tracking NEPSE’s IPO process.
Previous high-level commissions, including one chaired by Khanal himself, had also recommended selling NEPSE shares to the private sector to modernise the exchange. Despite repeated mentions in past budgets and reform agendas, the restructuring proposal has remained pending at the Ministry of Finance for nearly two years.
The submission of the committee’s report is now expected to revive the long-stalled NEPSE restructuring process.
