Quarterly accounts a must-show: Sebon

Every listed company will have to mandatorily submit its accounts to the Securities Board of Nepal (Sebon) on a quarterly basis from now on, according to the Share Registration and Issue Regulation 2065.
"Any company failing to do so will face stern action," said Dr Chiranjivi Nepal, chairman of the Sebon, the regulatory authority of capital market that has been given enough teeth to safeguard investors' interests.Sebon was busy since a year working out the modalities to make listed institutions more transparent and inform investors about the companies they have invested in. "Listed companies can now issue further Initial Public Offerings (IPOs)," director on the board Nirj Giri said adding that a company posting profit for at least two fiscals in the last five years and per share networth more than per share paid-up can further issue IPOs.
"The new regulation has also cleared the confusion over share issuance on premium," Dr Nepal said adding that a company can sell its shares adding premium not more than its networth per share that has to be verified by the external experts and due diligent audit.Share Registration and Issue Regulation 2065 is the fifth regulation brought by the board this year to make the capital market more vibrant and transparent.

Faster money back
KATHMANDU: Investors will get their money back within two months after the closing date of shares. Earlier, the maximum time for money back was three months (90 days). Now, Sebon has directed the issue managers to pay back the money within 60 days at the maximum if the number of applications exceeds 3,00,001. "If applications are under 1,00,000, issue managers must pay back within a month (30 days)," said the regulatot of the capital market. Similarly, if the number of applications is between 1,00,001 and 3,00,000, investors will get their money back within one-and-a-months (45 days).