Kathmandu. KATHMANDU: A task force formed to reform the capital market has suggested that the initial public offering (IPO) of Nepal Stock Exchange (NEPSE) should be announced within a year.
The government had formed a 4-member task force under the coordination of Acting Executive Director of the Securities Board of Nepal (SEBON) Rupesh KC. The task force led by Dr KC has submitted its report to the Ministry of Finance within 5 working days.
The task force has designated the Ministry of Finance, the Securities Board of Nepal (SEBON) and NEPSE as the agencies responsible for the IPO of NEPSE. The task force expects that NEPSE’s capital will increase and its capacity will increase after the IPO is launched.
The task force has concluded that the IPO is an appropriate option for restructuring Nepse. On the other hand, NEPSE has proposed the issuance of IPO in the report on restructuring of NEPSE prepared by itself and sent to the Ministry of Finance. In which NEPSE has proposed to bring 30 percent of the paid-up capital in the IPO and bring in foreign partners.
It has been a long time since the NEPSE restructuring report was submitted, but the Ministry of Finance has not shown much interest. However, the task force formed by the government for capital market reform has suggested the issuance of IPO for the restructuring of Nepse.
