SEBON amends Securities Registration and Allotment Bylaws 2073 in spirit with Nepal Government’s Janatako Jalavidhyut scheme; investors can begin investing with just 10% of the interested investment amount

SEBON has amended the Securities Registration and Allotment Bylaws 2073 with an aim to facilitate the federal government’s “Janatako Jalavidhyud” program.

The market regulator has brought following amendments under the second amendment in the Bylaws:

1). The hydropower company with at least 51% stake of government can issue shares or debentures for the general public after the detail project design with the estimated project duration and cost is available and when the financial closure for the same is available.

2). While issuing shares in IPOs by those hydro companies, they can call for share application with the interested investors to submit applications with just 10% of the total paid-up value of the share.

 3). In case, the applicants are allotted with the shares, the hydropower company shall be obliged to provide returns to the invested capital as per the interest norms of the government and the returns would later be adjusted with the remaining portion of the share that the investors will receive later.

4). After the promoters make full payment of their committed paid-up capital and after the completion of 50% of construction work of the hydro project, it can call for the total share subscription from the investors following which the share ownership will be issued for those public investors.

5). After the entire 100% paid up capital is raised, the hydro company can then get them listed in the stock exchange for their trading.

6). In case the company fails to raise total paid-up capital, it then needs to float the remaining shares for other interested investors within a month. The failure in this process will then require the promoters and the government to own the remaining shares.