KATHMANDU

The Securities Board of Nepal has introduced a rule that prohibits the sale of IPO shares reserved for mutual funds for up to 6 months in order to reduce supply in the market.

According to the decision made by the board, they have also directed CDS and Clearing Limited and all fund managers to implement this rule.

As per the board, as of Kartik 21, 2080, at least 5% of the public issuance of securities by organized institutions should be set aside for the collective investment fund, as per the Collective Investment Fund Regulation, 2067, and these securities purchased by the collective investment fund cannot be sold or transferred until at least six months have passed since the date of public issuance.