SEBON issued new directives; bars merchant bankers from working as issue managers of parent companies

Securities Board of Nepal (SEBON) has forbidden merchant bankers from working as issue managers of their parent companies due to engagement in unethical practices while issuing shares. Issuing a press statement published yesterday, the board has issued directives that merchant bankers are not allowed to be appointed as issue managers of their parent companies when they want to issue shares for the secondary market in order to maintain transparency and ethics. The Board has also restricted merchant bankers to work as security underwriter and managerial work if they are working as issue manager of any company. Furthermore, the merchant bankers are also not permitted to work as an issue manager of those companies in which they are involved as basic shareholders.