SEBON Sets New IPO Rules for Investment Companies in Nepal

The Securities Board of Nepal (SEBON) has introduced new IPO regulations aimed at tightening the eligibility criteria for investment companies looking to issue shares to the public. The revised guidelines focus on ensuring greater financial transparency, investor safety, and long-term market stability.

Key Changes in SEBON’s IPO Guidelines:

Minimum Capital Requirement: Investment companies must have a paid-up capital of at least Rs. 50 crore.
Profitability Requirement: Companies must show a successful track record, including profits in the last two consecutive fiscal years and a minimum of three years of operations.
Focus on Productive Sectors: Investments must be channeled into priority sectors such as energy, agriculture, communication, tourism, and manufacturing.
Improved Credit Rating: A credit rating at least one level above the standard benchmark is now mandatory.

These updated regulations aim to ensure that only financially healthy and credible investment companies can launch Initial Public Offerings in Nepal. SEBON believes the move will help foster stronger investor trust and improve overall capital market integrity.