SEBON To Implement Immediate IPO Rejection for Insufficient Bank Funds

The process of rejecting IPO applications if there is insufficient balance in the bank account is now to be implemented in Nepal.

The Securities Board of Nepal (SEBON) has passed regulations related to the API, allowing this system to be put in place for IPOs. With the implementation of this system, if an individual/ institution does not have enough funds in their bank account when applying for an IPO, their application will be immediately rejected.

According to Suresh Neupane, the Assistant Manager for the CDS and Clearing Limited (CDSC), these API-related regulations were passed on Ashwin 2nd, 2080. He stated, "With this system in place, if you apply for an IPO and there is no money in your bank account, your application will be immediately verified, and if funds are not available, it will be rejected."

Neupane further explained that entities responsible for data integration (banks, brokers, merchant banks, etc.) can now implement this system. He mentioned, "Members who receive authorization from the Securities Board will be provided with the required data through the API. They will also need to develop the necessary systems for this purpose."

Regarding the practical implementation of this system, Neupane mentioned that it will be performed primarily through the system itself. He stated, "Access to real data will be granted through the API."

With the approval of these regulations, the Operational Committee of the CDSC is now working to implement this system. Neupane added, "This system will be operational within the month of Ashwin, but it may take some time for everyone to fully integrate it."