10% shares to be reserved for Nepalis living abroad

By A Staff Reporter

Kathmandu, Nov. 4: Securities Board of Nepal (SEBON) has implemented the provision of 10 per cent reservation in the initial public offering (IPO) for Nepalis working abroad as migrant workers effective from Thursday.

According to the new system, all organised units have to set aside 10 per cent of the public shares to Nepalis who are working abroad lawfully.

The issue manager has to publish the invitation letter to the general public for a period of 15 days prior to the issuance of the shares.

When applying for shares, payment should be made only through the remittance savings account in an ASBA member bank or financial institution authorised to collect securities purchase applications from the Board.

In order to apply for the shares, there is a provision that the concerned persons should have deposited at least Rs. 50,000 in the last six months in the remittance savings account from the country where he/she is employed.

Initial public issuance for the general public should be done only after distributing the shares for foreign workers. If the issued shares remain unsold, such shares should be added to the public group and issued.

For the purpose of this clause, the depositor may open a beneficiary account for Nepali citizens who are working abroad by submitting the customer identification details electronically.