KATHMANDU: The government has amended the Securities Registration and Issue Regulations to open a new avenue in the primary share market for the targeted investment of Non-Resident Nepalese (NRNA) and Non-Resident Nepali Association (NRNA).

The government has issued the ‘Securities Registration and Issue (Eighth Amendment) Regulations, 2083’ targeting NRNA investors to issue shares.

According to the amended regulations, companies issuing shares under certain provisions will be able to issue shares not less than 10 percent and not more than 85 percent of their issued capital. This provision has created a new opportunity in the primary market for companies that want to issue shares targeting NRN investors.

However, there is a provision that the premium cannot be added to the shares so issued. That is, the company will not be able to issue such shares by adding an additional premium to the face value.

Similarly, the trading of such shares will be done according to the system prescribed by the stock exchange. The amended regulation also includes a provision that the minimum number of units of such shares will be 1,000 units.

The government has amended the regulations with the approval of the Government of Nepal in exercise of the powers given by Section 116 of the Securities Act, 2063. The amended regulations will come into effect from the date specified by the Securities Board of Nepal (SEBON).

Analraj Bhattarai, Chief Executive Officer (CEO) of NRN Nepal Development Fund, has taken the new system as an important step for the expansion of investment of Non-Resident Nepalese in Nepal. According to him, this arrangement has prepared the basis for connecting NRN investment to the primary capital market and bringing more capital in Nepal.

The new system is expected to expand investment opportunities in Nepal for NRNA investors and create a more conducive environment for non-resident Nepalese to mobilize their capital through Nepal’s capital market. He said that with the implementation of this system, NRNs will be able to easily invest in the stock market from next year.