Eighth Amendment to Securities Registration and Issuance: Door Opens for NRIs to Enter Capital Market
The government has issued the eighth amendment to the Securities Registration and Issuance Regulations, opening the door for Non-Resident Nepalis (NRIs) to directly invest in Nepal's primary share market. Under the amended regulations, companies can issue between a minimum of 10 percent and a maximum of 85 percent of their issued capital to NRI investors, but premium pricing is prohibited.
The government has amended the Securities Registration and Issuance Regulations and issued the 'Securities Registration and Issuance (Eighth Amendment) Regulations, 2083'. This amendment opens the door for Non-Resident Nepalis (NRIs) to directly participate in Nepal's primary share market.
According to the amended regulations, companies issuing shares targeted at NRI investors can issue between a minimum of 10 percent and a maximum of 85 percent of their issued capital. This will create a separate investment opportunity for NRIs in the primary market.
However, no premium can be added to such share issuances. Companies will not be allowed to issue such shares at a price higher than the face value.
The amended regulations also arrange for secondary market trading of such shares through a separate system. The minimum trading unit for such shares traded under the system specified by the securities market will be 1,000 units.