Sebon published press release regarding change in the rules of IPO, FPO & debenture issuance. Security board of Nepal is taking strong action toward the improvement of stock market.
To get approval from SEBON for floating IPO, FPO & Debentures must have following things;
- For IPO issuance, a company must receive more than minimum rating from Credit Rating agency.
- For Debenture issue, company must allocate 40% of issue for general public.
- The company with more than minimum rating should underwrite whole securities, before this change company with minimum rating were underwriting for IPO issuance.
- Initial public offering (IPO) with premium should be double a net worth per share which was 4 times of net worth.
- Further Public offering (FPO) with premium should be no more than net worth of the company which was 4 times of net worth.
