NEPSE Book Building Registration and renewal is now mandatory for institutional investors
30th April 2026, Kathmandu
To ensure the integrity and efficiency of this process, the Nepal Stock Exchange (NEPSE) has issued a vital public notice.
NEPSE Book Building Registration
All qualified institutional investors are now required to either register as new participants or renew their existing eligibility status. This move is designed to streamline the primary market and ensure that only verified and compliant entities participate in determining the market value of upcoming initial public offerings. For institutions looking to maintain their influence in the stock market, timely compliance with these registration requirements is essential.
The Call for Registration and Renewal
The directive from NEPSE applies to all institutional investors that have already received approval from the Securities Board of Nepal (SEBON). Participation in the book building process is not automatic; it requires an active standing with the exchange.
According to the official notice:
New Participants: Any institutional investor approved by SEBON that has not yet worked with the book building system must complete a fresh registration.
Existing Participants: Those who are already registered must undergo an annual renewal process to keep their status active.
Mandatory Requirement: Completing these steps is a prerequisite for participating in any future IPO allocations conducted via the book building method.
Fee Structure for Participation
To facilitate the administrative costs of managing the book building system, NEPSE has established a clear and transparent annual fee structure. These fees are categorized based on the status of the investor.
The applicable fees are as follows:
Registration Fee: New institutional investors are required to pay a one-time annual registration fee of NPR 10,000.
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Renewal Fee: Existing participants must pay a lower annual renewal fee of NPR 5,000 to maintain their eligibility.
Payment Process: Investors must deposit the designated amount into NEPSE’s specified bank account and submit the payment voucher as formal proof of the transaction.
The Role of Book Building in Market Pricing
The book building method is becoming an increasingly popular choice for companies entering the Nepal Stock Exchange, particularly those in the manufacturing and service sectors. Unlike the fixed-price method, book building allows institutional investors to submit bids within a specified price range. This professional bidding process helps in discovering a market-driven price that reflects the true valuation of the company. By participating, institutional investors play a key role in setting the stage for the general public, ensuring that the final IPO price is fair and sustainable.
Why This Notice is Critical for Investors
Timely registration or renewal is more than just a regulatory hurdle; it is a strategic necessity for institutional participants. As more high-value companies opt for this method, being unregistered could mean missing out on significant investment opportunities.
By completing the NEPSE Book Building Registration, institutions can:
Participate in Primary Offerings: Gain access to shares before they are available to the general public.
Influence Price Discovery: Use their expertise to help determine the fair market value of new listings.
Access Early-Stage Investments: Secure positions in promising companies across diverse sectors like healthcare, manufacturing, and hospitality.
Conclusion: Strengthening the Capital Market
The notice from the Nepal Stock Exchange highlights the evolving nature of the country’s financial ecosystem. By formalizing the registration and renewal of institutional investors, NEPSE is building a more robust and transparent IPO market. Eligible entities are strongly advised to settle their registration and renewal fees promptly. As the pipeline for upcoming book building IPOs grows, being ready to participate will allow institutions to capitalize on early investment opportunities while contributing to the overall stability and accuracy of market pricing in Nepal.
For More: NEPSE Book Building Registration
