Capital Compliance Deadline Extended Until End of Chaitra IPO Path Open for Stock Dealers

The Securities Board of Nepal (SEBON) has extended the deadline for broker companies to meet the minimum paid-up capital requirement by nine months, setting the new deadline at the end of Chaitra 2082. As per the regulations issued in 2079, broker companies were required to meet capital thresholds ranging from NPR 200 million to NPR 1.5 billion based on their category.

Among the 38 existing brokers, 22 have failed to meet the required capital levels. Instead of initiating punitive actions, SEBON has decided to provide an extension. This new deadline came into effect from the 32nd of Asar.

Additionally, the path for stock dealer companies to issue IPOs has now been opened. Companies like Nagarik Stock Dealer and Nabil Stock Dealer can now proceed with IPOs upon obtaining approval from the Board.

For margin trading, brokers with a paid-up capital of NPR 200 million will be eligible for licenses. Meanwhile, brokers with NPR 600 million in capital will be permitted to operate as Qualified Institutional Investors (QIIs).