Nepal Ethical Capital Market AI (NECMA) Framework: A Conceptual Framework on AI Usage for Capital Market

The intersection of Artificial Intelligence(AI), Machine(ML) and Big Data Analytics is changing the paradigm of the global finance. While developed countries are working on High-Frequency Trading (HFT) and algorithm transparency, emerging markets are facing leapfrog paradox, mushrooming among people without required institutional depth or regulatory maturity. This paper analyses this dynamics through perspective of Nepal, high people engagement, high behavioral herding and weak technological infrastructure. The study uses the conceptual and policy based methods integrating Nepal's AI policy, Cyber Security Bylaws and Nepal Rastra Bank (NRB) AI guidelines and aligning with OECD AI principles and European Union's AI Act. We propose Nepal Ethical Capital Market AI (NECMA) framework improvising Technology-Organization-Environment (TOE) theoretical model. The framework argues that ethical governance is not only a compliance but also a prerequisite. The paper recommends policy oriented recommendations for regulators and stakeholders to balance innovation with transparency, fairness, and financial stability.