SEBON amends Securities Issue & Allotment Guidelines; min 10 units reserved for each applicant, IPO to be allotted within 20 days & listed within 2 months

Securities Board of Nepal (SEBON) has amended Securities Issue and Allotment Guidelines, 2074 and Securities Businessperson (Stock Broker, Dealer & Market Maker) Regulation, 2064—including several guidelines for IPO/FPO allotment, IPO listing, bonus share registration, right share issuance and commencement of trading after merger/acquisition. Under the new regulation, IPO/FPO should be allotted within 20 days and listed within 2 months of the IPO closing date. Likewise, the Board has also made it mandatory for all applicants to be allotted a minimum of 10 units of shares—now discarding the existing provision to set aside 40% shares for retail investors and 60% shares for other investors. Likewise, companies that have already issued Further Public Offering (FPO) shares have been barred from issuing FPO within 5 years of the last FPO. SEBON has also set new compliance guidelines for stock brokers and their branch offices. Full Press Statement: