SEBON instructs issue manager of StanChart FPO to conclude allotment within 14 days
- ShareSansar, April 21, 2017 on Featured , FPO News , Latest , Stock Market
Securities Board of Nepal (SEBON) has instructed NMB Capital Limited (issue manager for FPO of Standard Chartered Nepal Limited) to conclude the allotment within 14 days (Baisakh 22, 2074).
Issuing a press statement, SEBON has instructed the issue manager to conclude allotment to ease the shortage of liquidity.
Citing the acute shortage of liquidity in the financial market and its adverse effect on the stock market, SEBON said that this would help solve liquidity to an extent. Since the number of applicants has exceeded 2 lakhs, the allotment was supposed to conclude in 60 days from the last day of issue i.e. within Jestha 2, 2074.
But, SEBON have instructed the issue manager to conclude FPO within 50 days from the last day of issue, i.e Baisakh 22, 2074.
After the allotment, more than 2.25 lakh investors will be refunded more than Rs 38 arba, which will help to solve the current liquidity shortage to an extent.
Kamal Prasad Nepal, Acting CEO of NMB Capital said, “We are endeavoring to conclude the allotment of Standard Chartered FPO before the deadline as prescribed by SEBON.”
The reduced time frame may pressurized the verification part of allotment, the issuing company will get less time on rechecking the data as ASBA is not fully implemented but once ASBA system gets fully implemented the allotment time can be significantly reduced, added Mr. Nepal.
The FPO of Standard Chartered Bank had been oversubscribed by 11.57 times. As per the data received by ShareSansar from respective issue managers, Standard Chartered FPO has collected over Rs 38.20 arba.