Securities Board Reviewing Plans to Remove

Kathmandu: Nepal Securities Board has prepared to remove minimum ten-quota policy in IPO. SEBON has started preparing to remove the ten-quota policy by forming a committee to review it. The board is going to review the 10-quota policy. The spokesperson of the board Muktinath Shrestha has said that a committee including Bholanath Dhungana has been formed under the coordination of Pravin Kumar Jha to review the 10- quota policy.

The members are Muktinath Shrestha and Ambika Prasad Giri. At present, there is a provision that only 10 shares can be applied for during the IPO. With this arrangement, it seems that the shares of any company can be sold and the underwriters also can underwrite them easily.

That is why the voice that the 10-quota policy should be removed has also started to be raised. In order to bring the stock market to the villages, the board had introduced a 10-quota policy. There has been a wide debate in recent days whether the 10-quota policy is right or wrong. For this reason, the board said that a committee has been formed to reach a conclusion after a thorough study.

Sources say that there is a possibility that the board may cancel this policy. Earlier, during the tenure of Revat Bahadur Karki, this policy was introduced to give shares to everyone as possible. After this policy, the number of IPOs has gradually increased.