Kathmandu. Companies with more than a certain amount of capital will have to issue an IPO compulsorily.
Finance Minister Barshman Pun, while presenting the budget for the coming year 2081/82 in the Parliament on Tuesday, announced that companies with capital exceeding a certain amount must be listed in the stock market.
“Companies with more than a certain amount of capital will be required to be listed in the stock market,” he said.
Earlier, the government had announced in the budget that there would be arrangements for bringing large companies to the stock market. However, it could not be implemented.
Minister Pun repeated the same announcement. He mentioned that the institutional capacity of Securities Board and Nepal Insurance Authority will be improved.
He said that the Securities Board of Nepal will be institutionally strengthened to protect capital market investors and investments.
Similarly, he mentioned that the structural reforms of NEPSE and CDS and Clearing will be done, legal and structural arrangements will be made for the operation of commodity regulation market.
Last year, the government amended the rules and simplified the process of issuing IPOs to companies.
