KATHMANDU, NOVEMBER 23
The Central Depository System and Clearing Ltd has started sending necessary documents and forms to banks for the distribution of customer relationship numbers to their customers, paving the way for Nepalis working abroad to apply and invest in initial public offerings. Authorities believe new arrangements will encourage Nepalis working abroad to invest in the domestic share market, as well as help ease the country's depleting foreign exchange reserves issue.
Stakeholders say the provision to reserve 10 per cent of IPOs for foreign workers is a positive move as it will attract more investment in the sector.
CDSC Spokesperson Suresh Neupane said necessary documents were being sent to banks to provide CRNs to Nepalis who have gone for foreign employment.
"Interested investors will be able to apply for a certain portion of the IPOs reserved for foreign workers after receiving the numbers. People who want a new demat account or have existing accounts can contact their respective banks to receive them," he said.
Stating that no deadline had been set, Neupane shared that investors can contact banks and request CRNs whenever they want from now onwards. "The first step for investors is to apply and receive their CRNs. Thereafter, they can apply for the IPO when they are issued," he said. Earlier, the government had arranged for a 10 per cent reservation in IPOs for Nepali workers working abroad.
"As the number of people going abroad for employment is on the rise, remittance inflow into the country is likely to increase further. The inflow of investment from migrant workers can have a positive impact on the market and the country's economy as well. The provision to reserve 10 per cent of IPOs for foreign workers is a positive move as it will attract more investment, as well as investors into the market." Chhote Lal Rauniyar, former president of Nepal Investors' Forum told THT.
Neupane also emphasised that the main goal of this provision is to make domestic share market accessible to Nepali foreign workers and attract foreign currencies alongside the development of the market.
In the first three months of the current fiscal year, remittance inflow had increased by 16.8 per cent to Rs 281.05 billion.
A version of this article appears in the print on November 24, 2022 of The Himalayan Times.z
