SEBON Orients Merchant Bankers on New IPO Standards; Primary Market White Paper Forthcoming

The Nepal Securities Board (SEBON) has initiated a significant stride towards bolstering the integrity and transparency of the primary capital market. In a recent orientation and interactive program held at its office, SEBON informed chief executive officers and high-ranking officials from various merchant banking institutions about the new 'Standards related to Financial Review for Initial Public Offering, 2082'. This crucial initiative aims to make the public issuance process more responsible, transparent, and qualitatively robust.

Effective from Baisakh 1, 2083 (mid-April 2026), these new standards are meticulously designed to enhance the quality, reliability, and financial governance of financial statements submitted by organizations seeking to go public. The program saw the participation of approximately 65 individuals, including SEBON's Chairman, board members, and representatives from various merchant bankers, underscoring the collaborative effort required for such pivotal reforms.

Addressing the attendees, Dr. Gopal Prasad Bhatta, Chairman of SEBON, reiterated the board's unwavering commitment to continuous policy reforms aimed at fostering a more organized, transparent, and investor-friendly primary capital market in Nepal. He made a significant announcement regarding the board's preparations to unveil a 'Primary Market Reform White Paper'. This forthcoming white paper is expected to place a strong emphasis on safeguarding investor interests and driving a qualitative transformation within the primary market, signaling a strategic vision for its future growth and maturity.

Chairman Bhatta also highlighted the indispensable role of merchant bankers in the primary securities market. He urged them to embrace greater responsibility and proactively champion the protection of investor rights. He expressed confidence that the implementation of these new standards would significantly strengthen the financial health and corporate governance of issuing companies, thereby building greater trust among investors.

During the program, Mr. Anandaraj Sharma Wagle, a SEBON board member and President of the Institute of Chartered Accountants of Nepal (ICAN), delivered a detailed presentation on the technical aspects of the new standards. He elaborated on the objectives behind their issuance, the implementation process, and their utility, emphasizing that these standards would serve as a cornerstone in ensuring the reliability of financial statements submitted for public issuance. Queries raised by participating merchant bankers during the interactive session were addressed by SEBON board members, fostering a clear understanding of the new regulatory framework.

This comprehensive orientation program is anticipated to facilitate a smoother implementation of the new standards, ultimately enhancing public confidence in the capital market. By elevating the benchmarks for financial scrutiny and corporate governance, SEBON is not only protecting investors but also laying a stronger foundation for sustainable growth and attracting both domestic and international capital into Nepal's burgeoning economy. These reforms are critical for the long-term health and credibility of the Nepalese stock exchange, ensuring that the primary market serves as a reliable conduit for capital formation and wealth creation.