SEBON’s new IPO allocation guideline not applicable in Chhyangdi Hydropower IPO; new guideline to come in effect from Shrawan only

Introducing Securities Issue and Allotment Guidelines 2074, SEBON introduced new guidelines for allocation of shares in public issues. Under this new provision, every applicant in the IPO/FPO should be allocated a minimum of 10 units whenever possible. However, this provision will come to effect only after Shrawan 1, 2074. As the ASBA application has been made compulsory from Shrawan 1, the IPO allotment would also be completed within 20 days. “This new guideline concerning IPO allotment will only be applicable from Shrawan 1, 2074”, said Mr. Niranjaya Ghimire, Deputy Spokesperson of  SEBON. However, other new guidelines including rights issue, FPO issue, merger/acquisition, compliance guidelines for broker companies are applicable from the day the directives were issued, added Mr. Ghimire. For any other IPO/FPO before Shrawan 1, 2074, the existing provision to set aside 40% shares for retail investors and 60% for other investors is applicable.