Nepal, Oct. 31 -- The Securities Board of Nepal (SEBON), in a bid to diversify and expand instruments of Nepal's capital market, has formed a seven-member committee to develop and implement new financial instruments.

The committee led by Deepa Dahal, acting executive director of the SEBON, includes representatives from Nepal Rastra Bank, the Nepal Stock Exchange (NEPSE) and the Merchant Bankers' Association of Nepal.

The sector's regulator has mandated the panel to develop the necessary legal, technical, and institutional infrastructure to expand the range of financial instruments traded in the capital market, thereby reducing the current over-reliance on equity (share) trading.

The committee has been tasked with studying the developme...