IPO certificates in Demat or Physical form?; HIDCL IPO share certificate still in paper form

All the listed companies at Nepal Stock Exchange Limited can only be traded in demat form in Nepse from Magh 01, 2072.

Recently, SEBON has further instructed all the listed companies to provide the bonus shares and right shares in the demat form into demat account of the shareholders.

ShareSansar inquired SEBON regarding the status of share certificates from Initial Public Offering (IPO).

NirajGiri, spokesperson of Securities Board of Nepal, said “We have not made demat compulsory for the IPO as there are various districts which do not have a Depository Participant (DP) service and if Demat is made compulsory now then it will be unfair for investors of such places with no DP service.”

We have given direction to IPO issuing companies that, from upcoming IPO, if demat account holders wants the certificate in demat form they can have it in dematform, else they will get it in physical form, added Mr. Giri.

Although for now, the share certificate from IPO of Hydroelectricity Investment and Development Company Limited (HIDCL) will be received in physical form.

An official with Citizen Investment Trush said, “IPO shares certificates of HIDCL will be distributed in physical form.”