Securities Board of Nepal (SEBON) has introduced a new regulation on the listing and trading of securities requiring companies to list their securities immediately after allotment. With the new regulation which came to effect from July 17, companies floating their securities must apply for listing in the stock market within seven days of approval of their prospectus by SEBON so that such securities can be listed for trading in the secondary market immediately after allotment. The new arrangement tends to shorten the time period that shares issued through the initial public offering or further public offering takes to get listed and traded in the stock market.
According to SEBON officials, the new regulation will shorten the time taken for the securities floated to public to get listed in the stock market for trading. The new regulation has also envisioned the classifications of listed companies into four categories based on their paid-up capital, return and compliance record, among other categories. Now, listed companies will be classified into ‘A’, ‘B’, ‘G’ and ‘Z’. Earlier NEPSE used to classify companies into only two categories: ‘A’ and ‘B’.
