NRN Nepal Development Fund Receives Green Light for Non-Resident Nepalis to Participate in IPOs

In a significant development, the path for NRN Nepal Development Fund Limited to issue an IPO for non-resident Nepalis has been cleared. The Government of Nepal, on Bhadra 6, granted approval for the Securities Registration and Issuance (Seventh Amendment) Regulations, 2080, paving the way for companies to issue IPOs targeted at non-resident Nepalis.

Under these revised regulations, investment companies established in compliance with prevailing laws, designed for joint investment by the Government of Nepal and non-resident Nepalis, can now invest in shares, stocks, and debentures exclusively in infrastructure projects for non-resident Nepalis holding foreign citizenship or permanent residence permits from foreign countries. This is subject to approval from Nepal Rastra Bank and must be conducted in foreign currency. Furthermore, the regulations now allow for the issuance of securities following prescribed rules.

The regulations also specify that trading of securities issued for investment in foreign currency shares, bonds, or debentures can exclusively occur among non-resident Nepalis who possess foreign citizenship or have obtained permanent residence permits from foreign countries. The Securities Board will collaborate with Nepal Rastra Bank to issue a separate guideline detailing this process.

NRN Nepal Development Fund Limited, established as a joint venture between the Government of Nepal and non-resident Nepalis, is poised to benefit significantly from these regulatory amendments. Anal Raj Bhattarai, the company's Chief Executive, views this regulatory change as a significant policy reform by the Nepalese government, effectively opening doors for NRNs to participate in Nepal's capital market and contribute to its growth.