Government Approves Securities Registration and Issuance (Seventh Amendment) Regulations 2080

In a recent development, the government has given its approval to the Securities Registration and Issuance (Seventh Amendment) Regulations 2080. This significant decision was made during a Cabinet meeting held on Wednesday.

The amendment is set to streamline the process for companies to issue primary shares, marking a departure from the previously stringent provisions for initial public offerings (IPOs). During a Cabinet meeting on Tuesday, it was unanimously decided to greenlight the Securities Registration and Issuance (Seventh Amendment) Regulations. With this approval, IPO-related regulations have been substantially relaxed.

Under the new regulations, companies with a paid-up capital exceeding one billion rupees will now have the immediate option to issue primary shares at a premium right after their conversion to a public company. However, if a company's capital falls below the one-billion-rupee mark, the existing three-year waiting period remains unchanged. Furthermore, the requirement of waiting one year after transitioning from a private to a public company has been abolished.

It's important to note that any company with less than ten years remaining until its expiry date will be prohibited from issuing primary shares. In a boost for the manufacturing industry, those companies that have been profitable for at least two consecutive financial years will be granted permission to issue shares at a premium.

Another noteworthy change is the provision allowing Private Equity firms to sell acquired shares within one financial year.

In addition to these amendments, the revised regulations have also paved the way for the issuance of green bonds, a move initiated by the government to promote sustainable investments.

These regulatory changes are poised to have a significant impact on the ease of doing business and investment opportunities in the country, opening up new avenues for both businesses and investors alike.