Investment advisory · Kathmandu · Est. in Nepal
Your base camp for Nepal's capital market.
Advising individual and institutional investors on NEPSE equities, debentures and mutual funds, and guiding foreign investors through Nepal's FDI framework.
1994
NEPSE operational since
286
Listed companies (Mar 2026)
NPR 4.74T
Total market capitalisation
35×
Market cap growth in 20 years
What we do
Advisory Services
01
Equity Advisory
Research-led guidance on NEPSE-listed equities. We screen for fundamentals, liquidity and entry timing before recommending a position, and review holdings as market conditions change.
02
Portfolio & Risk Management
Portfolio construction sized to your capital, time horizon and drawdown tolerance, with sector exposure limits suited to NEPSE's concentration.
03
Fixed Income & Funds
Access and selection support for corporate debentures, mutual funds and government securities, for investors prioritising steady income over price volatility.
04
FDI Advisory
End-to-end support for foreign and diaspora investors: sector screening against FITTA limits, threshold and approval routing, documentation and repatriation compliance.
How we work
From enquiry to ongoing review
- 1
First conversation
You write or call with your objectives, capital range and time horizon. We assess whether we are the right firm for the mandate and say so plainly if we are not.
- 2
Written proposal
A short engagement note setting out the scope, the sectors and instruments in play, fee terms and what reporting you can expect.
- 3
Research and construction
We screen the universe against fundamentals, liquidity and regulation, then structure the portfolio with explicit position and sector limits.
- 4
Execution support
Coordination with your broker and CDS account for trades, IPO applications and debenture subscriptions, with documentation handled end to end.
- 5
Ongoing review
Scheduled reviews as monetary policy, liquidity and company results move, with written notes on any change to position or thesis.
Market brief
Nepal's Capital Market
Nepal's capital market is the backbone of the country's long-term financing system, connecting businesses that need capital with individuals and institutions looking to invest. It is made up of the primary market — where companies raise fresh capital through IPOs, right shares, and debentures — and the secondary market, where those securities are subsequently bought and sold.
The market is regulated by the Securities Board of Nepal (SEBON), which oversees market conduct, licenses intermediaries, and protects investor interests, while the Nepal Stock Exchange (NEPSE) operates as the country’s sole stock exchange for trading listed securities.
Since NEPSE's establishment in 1994, Nepal's capital market has expanded considerably. Today it lists well over 300 companies across sectors such as commercial banks, development banks, microfinance institutions, insurance, hydropower, hotels, manufacturing, and mutual funds. Total market capitalization has grown into the tens of trillions of rupees, reflecting rising participation from retail and institutional investors alike.
For Base Camp Capital, this evolving market represents fertile ground: a maturing regulatory framework, growing product diversity (mutual funds, debentures, and increasingly sophisticated instruments), and a large, increasingly financially literate investor base.
Two decades of structural growth
Nepal's capital market has been transformed over the past twenty years. In mid-March 2006, NEPSE listed 131 companies with a combined market capitalization of roughly NPR 130 billion. By mid-March 2026, that had grown to 286 listed companies and a total market capitalization of approximately NPR 4.74 trillion (474 kharba) — a more than 35-fold increase. As of mid-2026, the exchange typically lists 330–370 active scrips, with daily turnover ranging from roughly NPR 3–7 arba on quiet sessions to over NPR 20 arba during active rallies.
Liquidity is macro-driven
NEPSE's turnover and index level move closely with banking-sector liquidity: remittance inflows, deposit growth, and Nepal Rastra Bank's monetary policy stance (interest rates, margin-lending rules, and CD ratio requirements) all directly affect how much money is available for share investment. Periods of falling interest rates and ample bank liquidity have historically coincided with sharp NEPSE rallies, while tightening cycles have coincided with prolonged corrections — a pattern investors should track alongside company fundamentals.
Taxation has recently been clarified
Capital gains tax (CGT) on listed shares is tiered by holding period: as of the FY 2083/84 budget, individual investors pay 10% CGT on shares held under one year (short-term) and 7.5% on shares held over one year (long-term), while institutional investors pay a flat 10%. Significantly, the government has now declared CGT on listed shares to be a final tax — once paid, no further income tax liability applies to that gain — which market participants and brokers have welcomed as a step toward long-term policy certainty.
Outlook
Government policy has been actively encouraging "real sector" companies (manufacturing, hydropower, agro-processing) to list, aiming to reduce the market’s historical over-reliance on financial-sector stocks. Combined with the recent tax certainty and periodic monetary easing, this points toward a capital market that is gradually deepening and diversifying — though it remains a frontier market subject to meaningful swings tied to domestic liquidity cycles.
Sector weightings
| Sector | Approx. market cap | Structural trend |
|---|---|---|
| Commercial Banks | Largest single sector, historically over NPR 1,350 billion at 2021 peak | High volatility; heavily shaped by NRB-mandated capital requirements |
| Insurance (Life + Non-Life) | ~NPR 636 billion | Steady, defensive; second only to banks in consistency |
| Microfinance | ~NPR 384 billion (up from NPR 87 billion in 2018) | Fastest-growing "BFI" sub-sector since gaining its own index |
| Manufacturing & Processing | ~NPR 339 billion (from NPR 6 billion in 2007) | Benefiting from policy push to promote "real sector" listings |
| Development Banks | ~NPR 224 billion | Steady but without explosive momentum |
| Hotels & Tourism | ~NPR 148 billion (from NPR 3 billion in 2007) | Listed companies doubled from 4 to 8; tied to tourism recovery |
| Trading | ~NPR 209 billion | Skewed by one-off events (e.g., a 2025 Supreme Court ruling allowing land-value capitalization into shares) |
| Finance Companies | Under NPR 100 billion | Long-term declining weight in the overall market |
Figures are indicative, drawn from published market data as of mid-2026, and will shift with daily trading — always confirm current sector weightings before making allocation decisions.
Structural considerations
- Price bands (circuit breakers) — limit daily price movement, which curbs panic but can also suppress price discovery and temporarily trap sellers during sharp downturns.
- Retail dominance — means sentiment, dividend/bonus announcements, and rumor can move prices as much as fundamentals — reinforcing the case for research-driven investing.
- Concentration risk — persists: banking, insurance, and hydropower/microfinance together still account for the large majority of market capitalization, so cross-sector diversification within NEPSE itself is more limited than in larger markets.
- A growing debenture and mutual fund segment — offers lower-volatility alternatives to direct equity exposure for more conservative investors.
Beyond the exchange
Investment Opportunities in Nepal
Nepal offers a diverse and growing range of investment avenues beyond the share market:
- Hydropower
- With significant untapped hydroelectric potential, hydropower remains one of the most actively promoted sectors, backed by government incentives and rising domestic and regional power demand.
- Banking & Financial Institutions
- A well-regulated, consolidating banking sector offers exposure through equity, debentures, and mutual funds.
- Tourism & Hospitality
- Nepal's natural and cultural heritage continues to draw global visitors, supporting steady growth in hotels, resorts, and travel-related businesses.
- Agriculture & Agro-processing
- A large agrarian economy offers opportunities in modern farming, food processing, and export-oriented agribusiness.
- Information Technology & Digital Services
- A fast-growing IT/BPO sector, supported by recent policy reforms that ease entry for tech-focused investment.
- Infrastructure & Real Estate
- Urbanization and public infrastructure investment are creating opportunities in construction, real estate development, and related services.
- Mutual Funds & Fixed-Income Instruments
- For investors seeking diversified or lower-risk exposure, professionally managed mutual funds and government/corporate debentures offer alternatives to direct equity investment.
Base Camp Capital works with individual and institutional clients to identify opportunities matched to their risk appetite, time horizon, and financial goals — from direct equity and debentures to sector-focused strategies.
For international capital
Foreign Direct Investment in Nepal
Nepal has been steadily reforming its foreign investment regime to make the country more accessible to international investors. FDI is primarily governed by the Foreign Investment and Technology Transfer Act, 2019 (FITTA), alongside the Industrial Enterprises Act, Companies Act, and related regulations.
- 01
Reduced minimum threshold
The minimum FDI threshold was lowered from NPR 50 million to NPR 20 million per investor per project, broadening access for smaller and mid-sized foreign investors.
- 02
Automatic Approval Route
The government has significantly expanded the number of sectors eligible for FDI approval through a faster, simplified automatic route, reducing reliance on lengthy manual approval processes.
- 03
IT and digital sector incentives
The minimum investment threshold has been removed entirely for select IT and digital industry categories (such as software development, IT parks, data processing, and digital mapping), making Nepal notably more attractive for technology-focused foreign investors.
- 04
Repatriation and banking access
FITTA allows companies with foreign investment to repatriate profits and dividends, and — subject to Nepal Rastra Bank approval — to borrow from foreign financial institutions.
- 05
Sector-specific caps
Certain sectors retain foreign ownership limits (for example, telecommunications and consulting services), so due diligence on sector-specific rules remains essential before structuring an investment.
- 06
One-window facilitation
The Department of Industry and the Investment Board Nepal (for larger projects) provide dedicated channels to guide foreign investors through proposal submission, approval, and registration.
For international investors and diaspora clients, Base Camp Capital provides end-to-end guidance — from regulatory navigation and sector selection to on-the-ground due diligence — to help FDI capital enter Nepal efficiently and compliantly.
Who we are
About the firm
Base Camp Capital is a Kathmandu-based investment advisory. We work with individual and institutional clients on NEPSE equities, debentures and mutual funds, and assist foreign investors with entry under the FITTA regime. Our approach is research-led: we assess company fundamentals, market liquidity and the regulatory environment before recommending a position, and we structure every portfolio around the client's time horizon and risk tolerance.
- Equity advisory
- Research-led guidance on NEPSE-listed equities, with portfolio structuring and ongoing review.
- Fixed income
- Allocation to debentures, mutual funds and government securities for lower-volatility exposure.
- FDI facilitation
- Sector selection, approval routing and compliance support for foreign and diaspora investors.
- Risk management
- Position sizing, diversification limits and liquidity planning suited to a frontier market.
Get in touch
Contact the firm
- Telephone
- +977 1 5705440
- Office
- Kathmandu, Nepal
- Hours
- Sunday – Friday, 9:00 – 17:00 NPT
Making an enquiry
Write to us with a short note on your objectives, capital range and time horizon. We reply within one business day. FDI enquiries should include the target sector and investor country of origin.
Email basecampcapital@brpnepal.com