Sebon forms committee to work out on FPO/ Right share of unregulated companies; urges concerned authorities for recommendation

Securities Board of Nepal (SEBON) has issued a press release regarding the formation of an expert committee to work out on the formation of regulations for issuing FPO and Right Share of listed companies having no regulating body. Listed companies in secondary market have to go through certain formalities to issue Initial public Offering (IPO). However there is no any concern regulating body for hydropower and other companies sectors in order to issue further public offering and right share. Certain criteria are must to maintain transparency and credibility while issuing Right Share and Further Public Offering so as to increase the company’s paid up capital. Hence SEBON has urged concerned authorities to suggest required regulations regarding issuance of Right Share and Further Public Offering and submit a proposal within a month to new committee. The newly formed committee will suggest clear and concise criteria related to issue Further public Offering and Right Share of those listed companies who don’t have regulating body. With the formation of this committee Sebon aims to achieve investors’ trust towards such listed companies and develop capital market accordingly. Please click here for the press release