Kathmandu. The Non-Resident Nepalese (NRN) Development Fund, established with the investment of Non-Resident Nepalis, has now opened the legal way to issue primary shares (IPO) in foreign currency. The Securities Board of Nepal (SEBON) on Tuesday amended the securities issue regulations to allow the fund to bring in foreign currency and withdraw returns and dividends in the same currency.

As per the new provision, the fund will be able to issue up to 85 per cent of its total paid-up capital (about Rs 8.5 billion) in foreign currency. This will provide an opportunity to Nepalis living abroad to invest in foreign currency.

According to Analraj Bhattarai, chief executive officer of the fund, with the amendment of the regulations, the IPO issuance process which has been stalled for a long time can now be started.

Earlier, the fund’s plan could not move forward as there was no clear provision in the securities legal system for IPO issuance in foreign currency. After SEBON amended the regulation, the provision of raising investment from Non-Resident Nepalese in foreign currency and taking the profit earned from it back in the same currency will come into effect.

After the implementation of this provision, the IPO issuance process of NRN Nepal Development Fund is expected to formally proceed.