Securities Board of Nepal Sets Eligibility Criteria for IPO Issuing Companies
Summary
Nepal's Securities Board has issued draft eligibility guidelines that would let qualified companies apply for IPOs at any time, replacing discretionary approvals. The new rules emphasize governance, financial strength, business readiness, investor disclosures, proper use of funds, and sector-specific risk checks.
Key Points
- SEBON has published draft Public Offering General Eligibility Guidelines, 2083, to set clear eligibility criteria for companies seeking IPOs.
- The draft requires strong governance, audited financials for the last three fiscal years, and fit-and-proper checks for directors and chief managers.
- Companies must disclose business prospects, risks, and return bases to investors before an IPO and maintain a separate account for IPO funds.
- SEBON will use a risk-based regulatory approach and apply stricter conditions to higher-risk sectors such as infrastructure and technology.
