Kathmandu. The Securities Board of Nepal has made the ninth amendment to the Securities Issue and Allocation Guidelines.
The directive has been amended on the recommendation of an internal committee formed by the Securities Board. Two provisions have been made through the revised guidelines.
According to the revised guidelines, the existing 15-day period, which is now open to apply for the shares allotted to Nepalis working abroad, has been revised to at least four working days. According to the revised guidelines, if all the securities issued during the period are not sold, the period will remain valid for 15 days from the date of opening.
Similarly, the Securities Board has amended the guidelines to issue unmatched undisclosed preference shares to banks and financial institutions. Earlier, there was no such provision in the guidelines.
According to the revised guidelines, banks and financial institutions can apply to the Securities Board to issue preferential shares only after obtaining approval from the Nepal Rastra Bank. Banks and financial institutions will be able to issue preferential shares at a face value of Rs 100.
Similarly, banks and financial institutions will be able to issue preferential shares only to institutional investors with less than 50 people through the circular method. General investors, securities entrepreneurs licensed by the board and collective investment funds will not be able to invest in it.
According to the Securities Board, the revised guidelines will come into effect from July 1.
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