Nepal | September 29, 2020

New rules for rights shares issuance

Himalayan News Service
Share Now:

Kathmandu, December 7

Companies — other than banks, financial institutions and insurance companies — listed in the share market would from now on have to get an approval of its plans and strategies from the company’s annual general meeting for the use of amount raised through issuance of rights shares and further public issue.

Securities Board of Nepal (SEBON) — the securities market regulator — has publicised this provision through a circular issued today.

“The new rules were proposed by the committee formed to recommend policy changes to make issuance of rights shares and further public issue of listed companies other than BFIs and insurance firms and were approved by the board on Tuesday,” says a media release issued by SEBON.

As per the revised rules, the companies would have to justify the ratio of issuance of rights shares and should have completed minimum of two years of operation since going public. Such companies should also have received credit rating as per the set rules and cent per cent of the issued capital should have been settled by the time of issuance of rights shares and further public issuance.

Projects should have fulfilled all required procedures like taking permission or approval before construction of the project as per the existing law. Such projects should also have already received letter of intent for construction.

Moreover, firms should inform SEBON about financial closure of the project and get the regulator’s approval  at least five working days ahead of issuing a public notice of rights issuance or further public issuance.

“These provisions have been put in place to make the policies related to issuance of rights shares and further public issuance clearer and for better management of investment,” the release says.


A version of this article appears in print on December 08, 2016 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Another woman succumbs to COVID-19 at BPKIHS

KATHMANDU: A woman infected with COVID-19 succumbed to the disease at BP Koirala Institute of Health Sciences (BPKIHS), on Monday morning. The 38-year-old woman from Dharan Sub-metropolitan City of Sunsari district had been undergoing treatment at the emergency ward of the hospital. She was ad Read More...

1,351 new cases take Nepal’s coronavirus tally to 74,745 on Monday

KATHMANDU: Nepal’s coronavirus tally moved to 74,745 as 1,351 new infections were reported in the last 24 hours. As many as 742 people that had earlier contracted Covid-19 tested negative for the infection as per the Ministry’s latest data. So far, 54,640 people have recovered from the diseas Read More...

Liverpool boss Klopp not anticipating any further arrivals

Liverpool will not make further additions to their squad in the transfer window unless they lose first-team players to injuries, manager Juergen Klopp has said. The reigning Premier League champions bolstered their squad with the signings of Thiago Alcantara, Diogo Jota and Kostas Tsimikas bu Read More...

"Planet is dying", India's 8-year-old climate crusader warns

NEW DELHI: When 8-year-old Indian climate change activist Licypriya Kangujam is older, she wants to launch a solo mission to the moon to research ways to save planet earth. One of the world's youngest climate change activists, Kangujam was influenced by the images of the devastation caused by Read More...

Worldwide coronavirus cases cross 32.97 million, death toll over 994,000

At least 32,979,301 people have been reported to be infected by the novel coronavirus globally and 994,217 people have died, a Reuters tally showed. Beijing on Monday called on importers to shun frozen food from countries suffering from severe novel coronavirus outbreaks after several cases Read More...

Baitadi district

Baitadi jail facing challenges due to overcrowding

BAITADI: District Jail, Baitadi has been facing problems in the management since it has been housing more than twice the number of jailbirds to its capacity. The jail is currently housing 58 persons including 31 inmates and 27 detainees. However, the prison only has the capacity to accommodate Read More...

Kathmandu Valley records 817 infections on Monday

KATHMANDU: Kathmandu valley logged over 800 additional cases of coronavirus infection in the last 24 hours. As per the Health Ministry’s latest report, 817 new infections surfaced in the valley today, which 60.47 per cent of the total caseload. Read Also: 1,351 new cases take Nepal’s coro Read More...

Four Covid-19 fatalities recorded on Monday, tally shifts to 481

KATHMANDU: Four people passed away from Covid-19 related complications in the last 24 hours, with which the nationwide death-toll has moved to 481. Two women two and men lost their lives due to this infection, the Health Ministry’s latest update showed. Read Also: 1,351 new cases take Nepal Read More...