Nepalese working abroad can apply for IPO in Nepal through a remittance account. A 10% quota is reserved in IPO for Nepali workers in foreign.
It does not matter if you are in America, Dubai, Qatar, or any other part of the world you can now take part in the Nepalese stock market if you have legal documents.
What is an IPO?
IPO stands for initial public offering. An IPO is the first time a company offers its shares to the public. Companies will use this process to raise capital to invest in their business and expand.
Suppose you have the opportunity to invest in an IPO. In that case, it’s important to research the company and see if it’s a good investment for you. The company’s potential financial performance is a major factor in deciding whether or not it’s a good investment.
How to apply IPO from abroad for Nepali workers
Any Nepalese individual working abroad and having foreign employment permit can apply.
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Documents Required for applying for IPO from abroad
- Identification (citizenship/passport)
- Foreign employment permit | Work Permit
- Remittance account in ASBA member bank
Before the general public is offered a share, companies should allocate 10% of their total IPO to Nepalese citizens working in a foreign nation.
Requirements for 10% IPO quota in Nepal
- Nepali working abroad
- Have work permits | foreign employment permit
- Remittance saving account in ASBA member bank
- Rs 50,000 deposit within last 6 months
- DEMAT account – CRN Number
Non-Resident Nepalis and Students working part-time cannot participate in the 10 percent IPO quota.
The requirements that are needed to apply for IPO in Nepal from abroad is that you should be a Nepalese citizenship holder working in abroad.
And, have labor approval from the relevant body of the Government of Nepal.
Also, it is important to have a formal remittance channel like a remittance saving account in Nepali Bank.
Reason for 10% quota in IPO
The officials believe this new system will help workers in foreign countries send home money through formal institutions (banks).
As the craze for IPO in Nepal has always been high. They believe the number of workers will start using a formal system for remittance if there is a certain percentage of reservation in the IPO.
According to government officials, most of the remittance amount sent by workers in Nepal was used for consumer product, which is mostly imported from other countries.
The Securities Board of Nepal | SEBON under the initiative of the Ministry of Finance aims for the money received should be used for the nation’s economy.