SEBON removes the upper cap for public issues ; Institutional investors to be benefitted

Securities Board of Nepal has removed the upper ceiling for the public issues. Following this rule, the investors can now apply for quantities as per their desire. Previously, one had to apply for shares below the upper ceiling specified by the issuing company. As per the rule, upper ceiling was 0.5% of the total issue.   

At the time when FPOs are struggling to get subscribed, this rule from the securities board has turned out to be a boon. There are a lot of investors willing to apply for huge units, but the ceilng had restricted them. Now the big institutional investors can apply for shares in huge quantity. 

The FPO of NMB Bank, that was subscribed by merely 50% is believed to attract huge demand from Institutional investors. The upcoming FPO of Nepal bank, which generated doubts regarding the timely subscription, will hopefully receive application for bulk quantity.