BFIs to charge up to five rupees for filling IPO

KATHMANDU: Now, banks will be allowed to charge a maximum of 5 rupees for the initial public offering (IPO). Ramesh Hamal, chairman of Securities Board of Nepal informed that in the meeting of the Board of Directors held on Sunday, there was a discussion about making an arrangement so that the CASBA fee can be charged only at a maximum of Rs 5.

Hamal informed about this in the discussion program on the possibilities and challenges of the derivatives market organized by the Nepal Stock Exchange in the capital.

At present, most of the banks and financial institutions are charging 15, 20 and 25 rupees from the customers for completing the IPO. Some have done it for free. Investors have been complaining that since a small number of IPOs are issued, the IPO itself is not required, but the fee is expensive. At present, more than two million people have filled the IPO.

Stating that he is constantly working for the development of the capital market, Hamal pointed out the need to work very carefully for the development of the derivatives market. He said that approval will probably be given to 10 private equity funds and venture capital within August.