SEBON to discourage third party application mandating separate cheques on application forms of public issue

Securities Board of Nepal (SEBON) has issued following directions to the Merchant Bankers to make the management of public offering more transparent. The directions are:

1. Requires issue manager to submit everyday data regarding the total form and amount collected to SEBON. Furthermore Issue Manager is alo required to submit final data within  3 days after the issue closes.
2. Except for the immediate family members, different account payee checks need to be submitted with the application form.
3. While refunding the money, the issue managers compulsorily need to deposit the money in the bank account mentioned in the application form by the investor.
4. Issue managers should make  keep offer letter approved by the Board, issues relating to right share and other details, on their respective websites until the closing of public issues so that the investors can easily view and make informed decision.
5. Requires to provide soft copy of the offer letter and other detail to the Board at least two days prior publishing it publicly.