SEBON displays red signal to open new merchant banks; Issue Managers and Share Registrars deemed sufficient for relatively small stock market

Securities Board of Nepal (SEBON) has decided to halt the licencing  of new Merchant Bankers with primary roles of issue management and share registrar. After operation of 25 Merchant Bankers in the stock market, the board citing that more number of issue manager and share registrar is of little use to our relatively small share market has decided not to accept new applications for the issue management and share registrar services.

The board has however not negating the need of other merchant bankers who provide investment management as well as underwriter service to the market and therefore will duly process the applications submitted by 7 more institutions for those two roles, reads the statement published by the board.

See the full decision here.