Nepal | September 21, 2020

Govt amends securities regulation

Himalayan News Service
Share Now:

Kathmandu, November 29

The dominating presence of the financial sector in the domestic stock market is expected to be diversified due to the recent policy departure by the government, that is, the amendment of the Securities Registration and Issue Regulation, which offers free pricing for initial public offerings (IPOs).

According to Rewat Bahadur Karki, chairman of Securities Board of Nepal (SEBON) — the securities market regulator — henceforth, companies will be allowed to fix the price of their IPOs rather than the mandatory Rs 100 per share before the amendment of the regulation.

Though free pricing of IPO is for all types of companies that meet the criteria set by SEBON to issue shares to the public, the real sector companies are especially expected to be attracted to go public because the threshold of shares that need to be issued to the public to become a public limited company has been reduced to 10 per cent from 30 per cent.

“Presently, the real sector companies can float 10 per cent shares to the public to be listed as public limited companies,” said Karki. “There is negligible presence of real sector companies in the country’s stock market, which needs to be diversified through maximum participation of the real sector companies. Only then will the stock market be able to reflect the real picture of the economy.”

According to Karki, these amended provisions are a milestone for the participation of real sector companies in the domestic stock market. “The government should also provide some attractive packages to the real sector companies through the fiscal and monetary policy.”

The current fiscal policy for the year 2016-17 has offered 15 per cent income tax exemption for real sector companies that float shares to the public.

Karki further laid emphasis on the need for Nepal Rastra Bank to also offer low interest refinancing facility for real sector firms listed in the stock market to encourage them to become public limited company listed in the stock market.

Nepse gains 2.88pc

KATHMANDU: The country’s only share market saw Nepal Stock Exchange (Nepse) index go on a roller-coaster ride on Tuesday.

Opening at Monday’s close of 1,510.16 points, the benchmark index had plunged to as low as 1,468.74 points within the first half hour. While Nepse had recouped the loss to surge to 1,524.30 points around noon, Nepse dipped back below the 1,500-point threshold over the next half hour. From thereon, the local bourse rebounded steadily to close at 1,553.68 points, a gain of 43.52 points or 2.88 per cent over the day.

Similar to Monday, apart from manufacturing, all the subgroups witnessed gains. Altogether, 1.41 million shares of 131 companies that amounted to Rs 1.19 billion changed hands through 7,648 transactions during the day.

A version of this article appears in print on November 30, 2016 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Photo Gallery: Rohingya refugees receive relief in Kapan amid COVID-19 crisis

KATHMANDU, SEPTEMBER 21 Hiteri Foundation provided food relief packages to long-persecuted Rohingya Muslim refugees here in Kapan on Sunday, September 20. More than 175 families are taking shelter in Kapan after entering Nepal following a mass exodus from their native Myanamar. Also seen in pi Read More...

Nepali Army soldier Nepal’s first security person to die of COVID-19

KATHMANDU, SEPTEMBER 20 Country witnessed the first death of a security person due to COVID-19. The deceased, a 34-year-old soldier of Nepali Army was posted in Kathmandu. He hailed from Ramechhap district. However, Nepali Army has not yet revealed the identity of the deceased. The deceased wa Read More...

Mane double eases Liverpool to 2-0 win over 10-man Chelsea

LONDON: Two goals from Sadio Mane just after halftime eased champions Liverpool to a 2-0 win over 10-man Chelsea in the Premier League season's first heavyweight clash at Stamford Bridge on Sunday. A dull game never threatened to live up to the eight-goal thriller when the sides met in Read More...

Son and Kane combination leads Spurs rout of Southampton

SOUTHAMPTON: Son Heung-min scored four goals set up by Harry Kane as Tottenham Hotspur came from a goal down to overwhelm Southampton 5-2 on Sunday and earn their first Premier League win of the season. In an action-packed first half at St Mary's, both sides had a goal ruled out by VAR before Read More...

Women, children highly affected by COVID pandemic

KATHMANDU, SEPTEMBER 20 The National Women Commission today organised a webinar on ‘Impact of COVID-19 on Women and Initiatives Taken by NWC and Nepal Police in Addressing Gender Based Violence Issues’ to highlight impact of pandemic on women and children across the country. According to t Read More...

Thapa vows to establish RPP as strong force

KATHMANDU, SEPTEMBER 20 Chairperson of Rastriya Prajatantra Party Kamal Thapa today pledged to establish the party as a strong force. The country would become prosperous and sovereign only by pursuing the ideology RPP as Nepal is faced with complex geo-political situation, he claimed at a virt Read More...

NCP Secretariat dwells on Cabinet reshuffle

KATHMANDU, SEPTEMBER 20 The Secretariat of the ruling Nepal Communist Party (NCP) today began discussion on Cabinet reshuffle. NCP Spokesperson Narayan Kaji Shrestha said the meeting discussed policy issues regarding the Cabinet reshuffle from different angles, but it did not take a decision o Read More...

Ministry of Urban Development

Bancharedanda landfill site to be completed by mid-October

KATHMANDU, SEPTEMBER 20 State Minister of Urban Development Rambir Manandhar said construction of a sanitary landfill site at Bancharedanda on the border of Nuwakot and Dhading districts will be completed by mid-October. During monitoring of the under-construction landfill site today, State Mi Read More...