Share brokers are now required to issue initial public offering (IPO) to the public. Share broker IPO Nepal
Such provision has been made in the Securities Dealers (Securities Brokers and Securities Dealers) Rules, 2078 prepared by the Securities and Exchange Board (SEBON).
Securities brokers will have to issue at least 30 percent of the paid-up capital to the public within three to five years if the regulations, which have reached the Ministry of Finance for approval, are passed.
In Nepal, brokers do not issue shares to the public. Shares must be listed on the secondary market for trading after issuance.
In this case, you have to trade your own shares. At that time, there may be a conflict of interest.
That is why the practice of issuing shares by brokers is not appropriate in terms of good governance, experts say.
“Everything new is happening in Nepal,” the source said.
In a country with a weak regulatory body like ours, experts say, it will only make things worse.
Kantipur Daily has written.