Securities Board of Nepal (SEBON) has arranged reservations in IPO for those who are employed abroad. The board has arranged the reservation with the objective that those who are employed abroad can easily invest in an ordinary share (IPO).
With the aim of allowing even those employed abroad to enter the stock market, the 'Securities Issuance and Allotment (Sixth Amendment) Guideline, 2079' has been implemented.
This arrangement will be implemented from now. Reservation has been arranged in IPO with the aim of encouraging remittances to be sent to Nepal through formal channels.
As the foreign exchange reserves are decreasing in Nepal recently, it is estimated that remittances from the formal system will increase if reservations can be arranged in the IPO for the workers who have gone for foreign employment.
This arrangement was made by the government after the money received from remittances was used only for the purchase of consumer goods and started going wherever it came from.
The board has made such an arrangement on the initiative of the Ministry of Finance with the aim that the money received from the remittance should be used in the productive sector and be used in building the country's economy.
According to the new system, Nepalese who are working abroad will have to participate in the share issue. Organized organizations must reserve 10 percent of the shares to be issued to the general public for the Nepalese who are employed abroad after obtaining labor approval from the relevant agencies of the Government of Nepal.
When applying for shares, payment should be made through the remittance account held at the ASWA member bank and financial institution. The board has made a provision that the share issue and sale manager should publish the invitation letter for a period of 15 days before the issue for the general public.
At the time of applying for shares, in the last 6 months in the remittance savings account, at least Rs. 50,000 Nepalese rupees should be deposited by the concerned person.
Nepali citizens who are employed abroad can open a beneficiary account by submitting customer identification details through electronic means while opening a beneficiary account. Banks and financial institutions will also have to provide the CRN number to the customer through electronic means.
According to the details of Nepal Rastra Bank, in the second month of the current financial year i.e. till the end of August, Remittances worth Rs. one trillion 87 billion four crores have been received.
According to the details of the second month of the current year, the remittance inflow has increased by 19.8 percent. In the same period of the previous year, the remittance inflow decreased by 5.8 percent.
The remittance inflow in US dollars increased by 11.3 percent and reached Rs 1.47 billion. Last year, such flow decreased by 5.3 percent.
During the review period, the number of Nepalis who took the final work permit (institutional and individual new) for foreign employment increased by 170 percent and reached 103898.
IPO