. KATHMANDU: The Securities Board of Nepal (SEBON) has directed all the merchant bankers to make the issue of securities more systematic, effective and credible.

The Board has issued a directive to the merchant bankers in exercise of the powers conferred by sub-section (1) of Section 84 of the Securities Act, 2063. As per the directive, the financial and managerial aspects of the issuing company should be studied objectively before submitting the application for the issue of securities. Likewise, the application should be submitted to the board only after ensuring that there is no conflict of interest in the issue process.

Similarly, the financial criteria set by the Board on the basis of the audit report of the financial year 2082-83 should be fulfilled in respect of the application received from the Board for the initial public offering (IPO). In case the audit is not complete, the process will have to be initiated on the basis of the financial statements certified by the auditor. Along with this, the board has also directed to submit a compliance report.