Kathmandu, Jan 7
The Securities Board of Nepal (SEBON) is mulling over an amendment to the Securities Registration and Issue Regulation-2008 to let the listed companies to issue Initial Public Offering (IPO) at a premium price of up to 2.5 times.
A draft of the proposed amendment being floated by the regulator paves the way for more companies, especially those from the real sector, to enter the stock market, according to the sources privy of the development.
The draft regulation states that a company can issue its IPO at a premium price not exceeding 2.5 percent of the per share net worth as per its latest audit report.
The existing regulation allows a company to issue an IPO within the limit of its existing per share net worth.
“We are planning to amend the regulation to make it more market friendly,” SEBON spokesperson Niraj Giri informed. “This should also encourage companies other than BFIs to enter the share market.”
The government as well as the regulator is under pressure from the stakeholders to bring in more of productive sector or the real sector to increase the size and depth of the market that currently is hugely dominated by BFIs.
Source: Sharesansar
The Securities Board of Nepal (SEBON) is mulling over an amendment to the Securities Registration and Issue Regulation-2008 to let the listed companies to issue Initial Public Offering (IPO) at a premium price of up to 2.5 times.
A draft of the proposed amendment being floated by the regulator paves the way for more companies, especially those from the real sector, to enter the stock market, according to the sources privy of the development.
The draft regulation states that a company can issue its IPO at a premium price not exceeding 2.5 percent of the per share net worth as per its latest audit report.
The existing regulation allows a company to issue an IPO within the limit of its existing per share net worth.
“We are planning to amend the regulation to make it more market friendly,” SEBON spokesperson Niraj Giri informed. “This should also encourage companies other than BFIs to enter the share market.”
The government as well as the regulator is under pressure from the stakeholders to bring in more of productive sector or the real sector to increase the size and depth of the market that currently is hugely dominated by BFIs.
Source: Sharesansar
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