SEBON Issues 10th Amendment to Securities Issuance and Allotment Guidelines 2082

The Securities Board of Nepal (SEBON) has introduced the Securities Issuance and Allotment (10th Amendment) Guidelines, 2082, to revise the existing Securities Issuance and Allotment Guidelines, 2074. The amendment has been issued by exercising the authority granted under Section 118 of the Securities Act, 2063.

According to SEBON, the amendment aims to strengthen regulatory practices related to securities issuance and the distribution process. Under the new provision, a sub-section (7) has been added to Section 40 of the 2074 guidelines. The newly added clause mandates that:

“All organized institutions registered with the Board must arrange for the dividend tax applicable on bonus shares distributed to their shareholders to be adjusted and paid directly by the respective institutions from the dividend itself.” This requirement ensures clearer compliance and a more streamlined process for tax settlement during the distribution of bonus shares.