Banking News – The Securities Board of Nepal (SEBON) has assigned the entire responsibility of IPOs back to merchant bankers. For this, companies do not need to come to SEBON. Companies should directly approach their issue manager merchant bankers. The board has made arrangements to only deal with merchant banks.

SEBON has set various “financial trigger points” from Baisakh 1 regarding what to look for in financial statements and what to examine before granting IPO approval. This provision has already been implemented, and merchant bankers are also aware of the matter.

SEBON had not previously developed its own internal processing standard operating mechanism for IPOs. To systematize this, the board has developed a Standard Operating Procedure. The board is currently in the process of screening IPO files under that Standard Operating Procedure. Previously, there was no standard procedure for which files to start the process with and which to end with. Now that has been completed.

Additionally, SEBON has stated that the IPO process will be digitized. Accordingly, the process has also been digitized. Arrangements are being made for issue managers to submit all necessary details and documents for IPOs through this system. SEBON’s IT team and the regulation departments handling IPOs are working diligently on this.

SEBON is moving forward with pilot testing of one file per week as much as possible for the IPO process. After completing that, it will be presented to the board. After that, the IPO process will become smoother. There are many files of listed hydropower companies for this. The board has already prepared special directives for various sectors including hydro, manufacturing, and hotels. Additionally, eligibility forms for IPOs have also been prepared. All documents are ready. The board is now moving toward implementation through discussion and ownership of the matter.

Only the final stage remains to complete the IPO process. Possibly within one or two weeks, the IPO process will be advanced. Good companies have been selected and scorecards of eligible companies have been prepared progressively. Numbers will be given on them. Companies that pass the designated marks will come to the market. In this process, IPOs of many companies will be coming within Ashwin 15.

(Edited excerpts of views expressed by Chairman Bhatta during the duologue at the Nepal Capital Market Discourse)