SEBON Prepares SOP and Strict Timeline to Streamline and Speed Up IPO Approvals
The Securities Board of Nepal (**SEBON**) is preparing a new Standard Operating Procedure (**SOP**) and fixed timelines to streamline the Initial Public Offering (**IPO**) approval process. Speaking at the House of Representatives' Finance Committee meeting on Wednesday, SEBON Chairman **Dr. Gopal Prasad Bhatta** stated that this move aims to eliminate unnecessary delays for legally compliant files. The implementation is expected to enhance efficiency and transparency for both issuing companies and investors.
The Securities Board of Nepal (SEBON) is formulating a standardized procedure to eliminate uncertainty and delays in the IPO approval process. Under the proposed framework, a Standard Operating Procedure (SOP) will clearly define the processing duration and movement of files through each administrative review level within the board.
Speaking at a meeting of the House of Representatives' Finance Committee, SEBON Chairman Dr. Gopal Prasad Bhatta disclosed that a new framework is being developed to make approval procedures more transparent and technology-driven. Once the SOP is implemented, the board will also enable tracking to monitor file status across review stages.
Key structural improvements planned by the board include:
- Tiered Responsibility and Timelines: Setting maximum time limits for each review tier, including financial, legal, and technical evaluations.
- File Tracking System: Developing a system to provide visibility on the exact stage and handling officer of each application.
- Elimination of Procedural Delays: Ensuring applications that fulfill all regulatory and legal criteria are not delayed unnecessarily.
Broader Capital Market Reforms Alongside SOP
According to Chairman Dr. Bhatta, alongside streamlining IPO approvals, the regulatory body is advancing several broader capital market reform initiatives. Listed companies will be required to disclose key corporate and financial information within mandatory deadlines, with non-compliant entities facing regulatory action.
Additionally, SEBON is advancing initiatives to broaden market participation:
- Margin Trading Expansion: Expanding access to margin trading services.
- New Financial Instruments: Introducing new Financial Instruments into the secondary market.
- Small Investor Participation: Encouraging retail investor entry via Mutual Funds.
The regulator assured that all new policies and operational guidelines will be finalized after thorough consultations with investors, listed companies, stockbrokers, and other key market stakeholders.