The Securities Board of Nepal (SEBON) has decided to
implement the provision from the first day of Nepali New Year 2076.
However, the investors trading shares worth less
than Rs. 500,000 can voluntarily obtain the PAN. It has been voluntary so far.
The capital market regulator has okayed the
provision that every investor must use the PAN number in shares transactions as
per the government's policy and programmes
for 2018/19.
It said that the new policy arrangement was being
implemented after rigorous interactions with the investors and other
stakeholders, and according to the decision of the High-Level Financial Sector
Coordination Committee.
The investors need to obtain the PAN number from the
tax office and must mention it in the Know Your Customer (KYC) form.
But the share investors have been protesting the PAN
implementation although the government wanted to execute it in order to block
black money in the capital market to discourage money laundering.
Investors' groups said that they were not against
the application of the new provision, but it was not a good time since the
stock market was experiencing bearish trend for a couple of years.
Last month, the Nepal Stock Exchange Limited (NEPSE)
had backed away from its earlier decision and said that it was not fully
prepared to apply the provision, and there was a need to create conducive environment
in the capital market before implementing it.
Meanwhile, the SEBON on Thursday decided to exempt
the hydroelectricity projects that will be developed under the 'People's
Hydroelectricity Programme' (PHP) from obtaining credit rating while issuing
the Initial Public Offering (IPO).
The decision has come against the Credit Rating
Bylaws 2011 which has a provision that every company issuing an IPO of more
than Rs. 30 million must obtain credit rating.
The government is developing 19 hydroelectricity
projects through the PHP.
Published in The Rising Nepal daily on 15 March 2019.
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