SEBON to entirely digitize public issue of shares

Kathmandu, Feb. 7

Chairman of the Securities Board of Nepal (SEBON) Ramesh Kumar Hamal has said that the capital market regulator has launched initiatives to digitalise the entire process for the public issuance of shares.

"The SEBON has given a top priority to the digitalizing process and a committee has been formed to draw a plan to digitilise the public issuance of the shares," he said at an interaction on SEBON's performance, issue approval process and current capital market situation in Lalitpur on Monday.

According to Hamal, government process is long and tedious and some of it is repetitive so implementing an online system for the job would address many grievances and facilitate the issuers as well as the managers.

He also said that there could be some leniency on administrative process but not on the valuation of the company that is planning for an IPO. "We are here to protect the interest of the investors," he said.

Likewise, he said that good private equity and venture capital companies should be welcomed with better policies. It will help to attract more foreign direct investment (FDI), he said.

He maintained that the Nepali capital market is witnessing the benefits of the recent reform policies implemented by the SEBON.

We have implemented bylaws to provide license to IPO in 45 days, and broker's branch office in 15 days, migrant workers can now invest in the IPO which will help to formalise the inflow of remittance, he said.

Meanwhile, bylaw to implement SME Platform at the stock exchange is in the final phase. It is approved by the board and sent to the Ministry of Finance for approval.

However, Hamal said that the process of licensing and approval could have been delayed due to insufficient human resource at the board.

Similarly, speaking about his citizenship row, he said that he had never acquired any foreign citizenship or 'permanent resident' status. "Even my son who was born in Thailand has Nepali citizenship. I am ready for any punishment if I have dual citizenship and if I have been involved in any financial misappropriation at the SEBON," he said. 

Published in The Rising Nepal daily on 8 February 2023.