Reservation for Nepalese working abroad in the IPO: For those who work overseas, the Securities Board of Nepal (SEBON) has set up reservations in the initial public offering. The board set up the reserve to make it simple for persons employed abroad to purchase an ordinary share (IPO). With the “Securities Issuance and Allotment (6th Amendment) Guideline, 2079,” it is now possible for those who are employed abroad to trade securities. This arrangement is also put into effect immediately. In order to encourage remittances to be remitted to Nepal through official channels, reservations have been made for an IPO.
It is predicted that reservations can be made in the IPO for the workers who have left for foreign employment. Remittances from the official system will rise as Nepal’s foreign exchange reserves have recently decreased. This agreement was formed by the government as a result of the money from remittances being used solely for consumer goods purchases and starting to disappear. With the intention of using the funds received from the remittance in the productive sector and helping to develop the nation’s economy, the board has formed this arrangement at the Ministry of Finance’s request.
The new mechanism requires Nepalese employees working abroad to take part in the share offering. Following receipt of labor approval from the appropriate agencies of the Government of Nepal. Organized organizations should set aside 10% of the shares to distribute to the general public for Nepalese employed overseas. Payment should make through the remittance account held at the ASWA member bank or financial institution when applying for shares.
Reservation for Nepalese working abroad in the IPO: SEBON
The share issue and sale manager must publish the invitation letter for a minimum of 15 days before the issue for the general public, according to a board provision. A minimum of Rs. 50,000 Nepalese rupees should deposit by the relevant person in the remit savings account within the last six months at the time of the application for shares. When opening a beneficiary account, Employe of Nepali nationals overseas should electronically submit their customer identity information.
Banks and other financial organizations will also need to give customers their CRN numbers electronically. Remittances totaling Rs. In the second month of the fiscal year the end of August 1 trillion, 87 billion, and 4 crores amounts is got. According to information provided by Nepal Rastra Bank.
Remittance inflow surged by 19.8 percent in the second month of the current year, according to data. The amount of remittances received was down 5.8% from the same time last year. The amount of remittances received in US dollars increased by 11.3% to Rs. 1.47 billion. Such traffic declined by 5.3 percent last year. The number of Nepalis who obtained a final work permit (institutional and individual new) for working abroad climbed by 170 percent and reached 103898 during the review period.
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