SEBON, the Securities Board of Nepal, has made new rules for investment companies that want to issue an IPO (Initial Public Offering).
Now, companies must have at least NPR 50 crore in paid-up capital. They should have been operating for at least three years and made a profit for two years in a row. The company’s net worth must also be higher than the face value of its shares.
These new rules are meant to make sure that only strong and reliable companies can raise money from the public. This will help protect investors and make the stock market safer.
The new SEBON guidelines mean only companies that are financially healthy and stable can offer shares to the public. By requiring a minimum capital of NPR 50 crore and at least three years of operation with two years of profit, SEBON wants to avoid weak companies from rushing into the stock market.
This helps protect investors from risks and scams. It also encourages companies to build a stronger business before asking the public to invest.
Smaller or newer investment firms might find it hard to meet these rules and may have to wait longer before they can launch an IPO. Larger, well-established companies will find it easier to follow the rules and attract investors.
Overall, these rules aim to make the Nepalese stock market safer and more trustworthy.
If you want, I can also help with examples of companies that might qualify or not qualify under these rules. Would you like that?
