The article discusses the role of capital markets in the economic development of nations, with a focus on the Nepalese stock market. Capital markets are a means through which scattered savings and investable resources are converted into actual investment, with the primary role of allocating the economy's capital stock among various productive sectors. The Nepalese stock market is small compared to its neighboring countries, but the financial sector in Nepal has grown significantly in recent years. The Securities Exchange Centre was established in 1976 to provide and develop a market for securities, and it was converted into the Nepal Stock Exchange in 1993. The basic objective of the Nepal Stock Exchange is to impart free marketability and liquidity to government and corporate securities by facilitating transactions in its trading floor through member market intermediaries.