Govt allocating 10 percent of issued IPOs to migrant workers beginning next fiscal year

Published On: June 25, 2022 06:26 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, June 25: The government is allocating 10 percent of the issued public offerings to the migrant workers. This new arrangement will come into effect from the commencement of the fiscal year 2022/23.  

The Securities Board of Nepal (Sebon) in its 19-point agreement signed with the investors on Friday stated that the legal procedure allowing the migrant workers has reached its final stage. The initiative is a way forward to create an environment facilitating Non-resident Nepalis (NRNs) to invest in the country’s share market, reads the Sebon statement.

Last February, the government agencies had agreed to allocate a certain quota of IPOs for Nepali migrant workers on issuance of every primary share. Following the move, the Sebon started preparing a standard operating procedure to regulate the reservation.

In addition, the Sebon has assured the investors to coordinate with the Ministry of Finance to reduce capital gains tax to three percent from existing five percent for the long term investors. The regulator has also agreed to facilitate implementation of all the conditions of the 58-point agreement made four years ago to solve various inefficiencies underlying the country’s stock exchange market.     

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