SEBON Revises the IPO Assurance Fees; The Maximum Fees for Filling Up IPO is Reduced to Rs. 5

SEBON, the Securities Board of Nepal, has agreed to modify the assurance fee. The Board of Directors resolved to make the required preparations during its meeting on Sunday night so that the assurance fee may only be levied up to 5 rupees.

The Securities Purchase (Public Issuance) Guidelines, 2073 must be amended in accordance with the Board of Directors' decision. The board announced that it will be put into effect as soon as the necessary changes to the guidelines were made.

Investors have been requesting a revision of the fees due to the vast number of IPO applications, alleging that they rarely receive allocations and that the fees are also high. As a result, Ramesh Hamal, the chairman of the Securities Board, established a committee to investigate this. The board cut the fees in light of the committee's recommendations.

Prior to this change, banks and other financial organizations could only charge a maximum of 100 rupees. However, if they so choose, they can offer this service for no charge. Three commercial banks already offer this service without fee.