SEBON dismisses provision of collecting IPO/FPO amount in Nepal Rastra Bank

Securities Board of Nepal (SEBON) has issued a press statement regarding termination of a provision in a directive of the Board to deposit amount collected from Initial Public Offering (IPO) and Further Public Offering (FPO) in Nepal Rastra Bank Limited. The Board’s meeting held on Magh 13, 2073 decided to discontinue the provision. Earlier the Board had a provision of depositing the amount collected from IPO/FPO shares within 6 working days in Nepal Rastra Bank. The collected amount could be withdrawn from the central bank only after the Board’s permission. The Board has terminated the directive pointing out its impact on liquidity in the market. Bank and Financial Institutions (BFIs) have been updating their financial details to the central bank on monthly basis and Application Supported by Blocked Amount (ASBA) system has come into practice, ASBA system making the directive not a requisite. The decision is aimed to minimize the liquidity problem.