Government Designates SEBON as Regulatory Body for Investment Companies Meeting Capital and Transaction Thresholds
The Government of Nepal has issued a notification in the Nepal Gazette, dated Poush 18, 2081, as per the decision of the Office of the Prime Minister and Council of Ministers. In accordance with the authority granted under Section 7, Sub-section (2) of the Asset (Money Laundering) Prevention Act, 2064, and based on the recommendation of the Coordination Committee, the government has designated the Securities Board of Nepal (SEBON) as the regulatory body for investment companies that meet either of the following criteria:
- A paid-up capital of Rs. 5 crores or more
- An annual transaction volume of Rs. 10 crores or more
In this regard, such investment companies are required to be registered with SEBON as per Rule 10 of the Asset (Money Laundering) Prevention Regulations, 2055, and must submit the following documents and details for registration.
1. A formal application for registration with SEBON
2. Details of the Board of Directors, including names, addresses, contact numbers, and shareholder records
3. The company’s updated Memorandum and Articles of Association
4. A criminal clearance certificate of the company
5. A copy of the company’s Permanent Account Number (PAN) registration certificate
6. Details of the Chief Executive Officer, including name, address, and contact number
7. A certified copy of the Board of Directors' resolution approving the registration with SEBON
8. Authorization letter from the Board of Directors regarding the registration process
9. Audited financial statements, including a report specifying annual transactions and audit findings
10. Documents and details confirming the company's paid-up capital
Investment companies falling under this category must comply with the outlined requirements to ensure regulatory compliance with SEBON.
