header banner
ECONOMY

Sebon brings new norms for rights issue, FPO

KATHMANDU, Dec 7: Securities Board of Nepal (Sebon) has introduced a new set of conditions and standards for the listed companies, except bank and financial institutions (BFIs) and insurance companies, for rights and follow-on public offerings (FPOs)
By Republica

KATHMANDU, Dec 7: Securities Board of Nepal (Sebon) has introduced a new set of conditions and standards for the listed companies, except bank and financial institutions (BFIs) and insurance companies, for rights and follow-on public offerings (FPOs)



Issuing a statement on Wednesday, Sebon said that the new conditions and standards for listed companies to float rights issue and FPO was adopted based on the recommendation of a committee that it had formed. The new conditions and standards are aimed at making the rights and FPO floating fair and transparent, according to Sebon officials.



According to new rules, a listed company looking to float rights issue or FPO should first get its plan and strategy of utilizing the fund drawn from such issues approved by its annual general meeting. Similarly, a listed company would be allowed to float rights issue or FPO only after two years of going public.



The listed company that wants to launch rights or follow-on public offering should meet pre-conditions like completing credit rating, having fully paid share capital, and acquiring letter of intent permit or approval from respective authority if the fund is planned to be used in any new project. 



According to the new requirement, a listed company that wants to float rights issue or FPO should complete financial closure at least five days before publishing public notice about such issuances.


Related story

Sebon tightens FPO process


 

Related Stories
ECONOMY

Butwal Power Company's FPO under-subscribed

ECONOMY

19 companies await Sebon nod to launch rights issu...

ECONOMY

SEBON scraps rule of parking money collected in IP...

ECONOMY

Nepal Bank Limited's FPO receives frosty response...

ECONOMY

Nepal Bank's FPO receives frosty response from pub...