The Nepal Securities Board (SEBON) has introduced a new policy to strictly monitor how companies use the money they raise from public offerings (IPOs), ensuring it is spent only for stated purposes.
For the fiscal year 2083/84, the Nepal Securities Board (SEBON) has unveiled a new capital market policy. A key part of this policy is strong supervision over how companies use the capital they raise through public offerings (IPOs).
The board has introduce this policy to prevent companies to use money collected from the public for purposes other than what was mentioned in the prospectus. According to the new rule, SEBON will actively check if listed companies are indeed using funds from IPOs or other securities issues for the exact projects and goals stated in their original prospectus documents.
Furthermore, the policy includes a plan to compare the money companies gather from public offerings against their initial plan for using the funds and how much they actually spend. This comparative analysis will help ensure transparency.
SEBON mentioned that this monitoring and testing will be carry out through institutions that it has authorized.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
