Kathmandu. The Securities Board of Nepal has introduced a new provision in the IPO of the investment company.
The Securities Board of Nepal (Sebi) has amended the earlier policy provision to allow investment companies to make initial public offering (IPO) of securities. A meeting of the Board of Directors of the Securities Board of Nepal has set eight criteria for granting IPO approval to investment companies.
Such are the criteria
An organized organization/investment company should have been in operation for at least the last 3 years and made profit in the last two financial years.
The net worth per share of an organized organization/investment company should be more than the face value.
An organized organization/investment company cannot buy securities other than the founder shares of organized organizations related to energy, transport, communication, agriculture, tourism, production and processing, information technology and mineral mining, and through the primary and secondary markets. However, if you get permission from the Securities Board to act as a qualified institutional investor, you can act as a qualified institutional investor only in the initial public issue through book building method of organized organizations related to energy, transport, communication, agriculture, tourism, production and processing, information technology and mineral mining.
Organized organizations/ investment companies should be established to invest only in the securities of organized organizations in energy, transport, communication, agriculture, tourism, production and processing, information technology and mineral mining sectors.
An organized organization/investment company should have a credit rating grade of at least one level above the minimum.
The paid-up capital of an organized organization/investment company is at least Rs. It should be 50 crores.
The Government of Nepal should be an organized organization established with the objective of investing in energy, transport, communication, agriculture, tourism, production and processing, information technology and mineral mining sectors÷
The organizations established with foreign investment should have completed the process of the Act related to foreign investment and technology transfer.
