Money market and capital market are essential parts of the economy. The central bank oversees the money market, while the securities regulator manages the capital market. Money market deals with short-term investments, while capital market focuses on medium and long-term investments. In Nepal, the capital market involves trading in various financial instruments like shares, bonds, and mutual funds. Legal regulations like the Securities Act and Commodities Act govern the capital market, while laws like the Banks and Financial Institutions Act and Nepal Rastra Bank Act regulate the money market in Nepal.