The Securities Board of Nepal (SEBON) has announced that investors must have sufficient funds in their bank accounts to buy shares, effective from fiscal year 2082/83.
As per SEBON’s policy and program for the current fiscal year, share transactions in the secondary market will only proceed if the purchaser’s bank account has sufficient balance. This new regulation aims to enhance market integrity and investor protection.
In addition, when applying for Initial Public Offerings (IPOs), the application amount will now be immediately blocked. Once an application is registered, banks and financial institutions will freeze the funds through the CDSC system. These funds will only be released after the IPO allotment process is completed.
SEBON expects this system to increase market transparency, safeguard investors, and strengthen public confidence in the securities market.
Furthermore, SEBON plans to monitor whether funds raised from public issuances are used for their intended purposes. It will also inspect whether brokers adhere to investors’ instructions during transactions.
📌 This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
