The Securities Board of Nepal (SEBON) has formed a study committee to propose suggestions for amending existing regulations and guidelines to streamline the public offering process. The board has formed a five-member study committee, chaired by Muktinath Shrestha, Chief Executive Director of the Board's Regulatory Department, according to SEBON spokesperson, Niranjaya Ghimire.  

"The study committee will work on amending the provisions of the Securities Registration and Issuance Regulations and the Book Building Directive, 2077," Ghimire stated. In recent years, controversies have arisen over companies issuing shares through premium pricing and the book-building method. Notably, the planned share issuance by Reliance Spinning Mills through the book-building method has sparked debate.  

"The study committee will prepare a report based on various international studies and recommendations from different stakeholders," Ghimire added. While the board has not set a deadline for submitting the report, Ghimire, who is also a member of the committee, has pledged to complete the task promptly.  

Currently, SEBON approves public issuances through face value, premium pricing, and book-building methods, based on the Securities Registration and Issuance Regulations and the Book Building Guidelines. Recently, the Public Accounts Committee of the House of Representatives expressed concern about public issuances, directing that approval not be granted to companies with a net worth of less than Rs 90 per share.  

The committee also instructed the government to tighten the approval process following investor complaints about allegedly inflated pricing of shares issued through premium pricing and book-building methods. In response, SEBON has refrained from approving share issuances through these methods in recent months.  

Ghimire emphasized that while the study committee aims to make the public issuance process more efficient, the approval process will not be halted.