5-Point Amendment to Companies Act 2053 for Stock Market Reform

The government has introduced significant amendments to the Companies Act, 2053, aimed at reforming the stock market. In a press conference held by the Ministry of Finance today, the government outlined five key points of the amendment.

The amendment allows startup companies to issue up to 40% of their paid-up capital and up to 20% of the company's shares to individual investors.

Additionally, shareholders of a private company can now become shareholders in another private company, providing them with more flexibility.

The amendment also simplifies procedures for public companies outside the banking, financial, and insurance sectors to allow more shareholders and encourages private companies to issue IPOs at premium prices by removing the additional approval process from the Office of the Company Registrar.

The government has also eased the company registration process. Companies that fail to submit shareholder details or need to shut down will now face minimal penalties, making the process more streamlined.

According to the government, these amendments are expected to bring reforms to the stock market, boost the economy, and enhance investor confidence.