Kathmandu. Nepal Stock Exchange (NEPSE) has opened the way for restructuring.
The Securities Board of Nepal (SEBON) has directed to proceed with the process of issuing IPO to the general public for the restructuring of NEPSE. The Securities Board has sent a letter with this directive to NEPSE.
Nepal Rastra Bank (NRB) board member Chintamani Shiwakoti has directed the securities board to proceed with the restructuring process of NEPSE based on the suggestions made by the capital market reform suggestion committee.
According to sources in the Securities Board, the finance ministry has sent a letter to NEPSE accordingly after it was directed to proceed with the restructuring of NEPSE based on the suggestions given by the Shivakoti-led committee. “The general public has been asked to prepare an action plan with an IPO,” a source said.
A few years ago, NEPSE had prepared an action plan report for the restructuring of NEPSE and sent it to the Ministry of Finance. The report is currently pending with the ministry. However, now the ministry seems to be interested in restructuring NEPSE.
In the action plan prepared by NEPSE, it was proposed to remove the government’s share in NEPSE and bring an IPO to 30 percent of the general public. At present, the government’s share in NEPSE is 58.66 percent.
In the previous report of NEPSE, it was proposed to bring in foreign strategic partners and give shares to public institutions, banks, insurance, etc. At present, Rastra Bank has 9.5 per cent stake in NEPSE, Employees Provident Fund 10 per cent, Rastriya Banijya Bank 11.23 per cent, Laxmi Sunrise Bank 5 per cent, Prabhu Bank 5 per cent and others 0.60 per cent.
Nepse currently has a paid-up capital of Rs 1 billion. To raise the paid-up capital to Rs 3 billion, NEPSE will now proceed with the process of issuing IPO and bringing in foreign strategic partners.
NEPSE spokesperson Murahari Parajuli said that a letter has been received from the Securities Board to implement the suggestions made in Shivakoti’s report for restructuring nepse. “Nepse will now move forward accordingly,” he said.
