Kathmandu, Nov. 13: The Security Board of
Nepal (SEBON) Sunday said that the new Securities Registration and Issue
Regulations, 2016 would come into effect from Wednesday (Nov 16), allowing the
international financial institutions to issue their bonds in the local
currency.
The Asian Development Bank (ADB) and World
Bank's subsidiary agency - International Finance Corporation (IFC) - have been
waiting for the implementation of
provision for the last couple of years.
The government, in the budget for the Fiscal
Year 2013/14, had made provision to allow international development partners to
issue bonds in local currency.
It took about four years to prepare the
regulations for the same.
The new regulations have also the provisions
to allow the real sector industries to issues minimum 10 per cent of its shares
to the public.
The Ministry of Finance (MoF) had already
approved the regulations on 8th November.
New regulations have replaced 2008
regulations of the same.
“The new regulations are expected to address
the weaknesses of the previous regulations, too,” said SEBON spokesperson Niraj
Giri.
It has also aimed at making the provision to
issue securities at premium prices market-friendly and simplifying registration
of securities and fee deposit process, issue of right share and Initial Public
Offering.
Giri said that enforcement of the new regulations would motivate real
sector organisations to be listed in the stock exchange and bring changes
needed for the structural changes in the secondary market while the securities
issue would be more be manageable and transparent.
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