IPO’s will Bought By Mutual Funds Immediately : SEBON 

Kathmandu :  Securities Board Of Nepal(SEBON) has restricted the IPO sale of mutual funds. According to the new arrangement of the board, reservation IPO cannot be sold for 6 months after the allotment of shares. The collective investment fund regulation that requires at least five percent of the securities to be organized as per the instructions of the board to be set aside for the collective investment fund,

According to the instructions of the board, at least five percent of the securities should be separated aside for the collective investment fund by the organization ain accordance with the provisions of the Collective Investment Fund Regulation, 2067 B.S.

In the provision, it is mentioned that the securities purchased by the collective investment fund shall not be sold or transferred by the organized organization until six months have passed from the date of public issue and distribution to the general public.

According to SEBON, this rule will be implemented from 7th November, 2023 A.D (21st Kartik 2080 B.S). The board has instructed CDS and Clearing Limited and all the scheme managers to arrange according to same rule.

If the plan expires or the plan is canceled within 6 months after the securities are allotted, then only the securities owned by the collective investment fund can be sold and transferred within that period.