The SME platform has been implemented for small and medium organized entities.

From today (Magh 3), the "Securities Issuance and Trading Regulations for Small and Medium Organized Entities, 2081" have been implemented, providing small companies with an opportunity to enter the securities market. This new regulation opens the way for companies with a paid-up capital of 250 million rupees to issue IPOs.

Small and medium companies are required to issue 30% to 49% of their paid-up capital in the form of an IPO. These companies must apply for a minimum of 500 shares and set a face value of 50 rupees per share. The decision to issue an IPO at a premium will depend on the company's profitability and credit rating.

Five percent of the IPO must be purchased by a merchant banker, and 15% must be bought by qualified institutional investors, with a provision that the shares cannot be sold for three years. This move will provide small companies with a new direction for growth.