Nepalese Living Abroad Must Deposit At Least Rs. 50,000 In the Remittance Savings Account Before Applying for IPO

Thu, Nov 3, 2022 5:08 PM on Share Allotment, Stock Market, Latest,

The Securities Board of Nepal (SEBON) has issued a circulation stating that 10% of the issued shares in the case of an organization's initial public offering (IPO) of shares shall be allocated separately to Nepalese who have obtained work permits from the appropriate agencies of the Government of Nepal and are to be distributed in accordance Securities Issuance and Allotment (Sixth Amendment) Directive, 2079 dated 17 Kartik, 2079.

The main guidelines that must be followed before applying for such shares are listed below.

  • After acquiring labor approval from the appropriate agency of the Government of Nepal, the organization must reserve 10% of the publicly issued shares for Nepalis who have engaged abroad prior to the initial public offering to the general public.
  • The issue and sales manager must publish a notice 15 days prior to the issue to the general public and the payment can only be made through the remittance savings account when issuing the allotted shares.
  • The applicant must have deposited at least Rs. 50,000 in the remittance savings account from the country where he is employed within the previous six months in order to be eligible for the issue.
  • The deposit participant may open a beneficiary account for Nepalese nationals who reside and work overseas by online entering the customer identity information.
  • Nepalese nationals who have applied for issued shares are unable to apply for shares that will be distributed to the general public.