SEBON Issues New Regulatory Directives for Merchant Bankers to Enhance Market Transparency
26th August 2026, Kathmandu
The Securities Board of Nepal (SEBON) has issued new directives for merchant bankers under the authority of the Securities Act, 2063 BS.
New Regulatory Directives Issued by SEBON
The provisions aim to strengthen due diligence, regulatory compliance, and investor awareness in the capital market.
Due Diligence and Eligibility Assessments
Pre-Application Assessment: Merchant bankers must thoroughly evaluate the financial and managerial health of issuing companies before submitting applications for Initial Public Offerings (IPOs) or Further Public Offerings (FPOs).
Conflict of Interest Checks: Merchant bankers are prohibited from proceeding with an issuance without verifying that no conflict of interest exists with the issuing company.
Advertisement
Evaluation of Pending IPO Applications: For IPO applications currently under SEBON review, merchant bankers must re-evaluate financial eligibility based on audited financial statements for Fiscal Year 2082/83 BS or auditor-certified financial reports.
Compliance Framework and Investor Awareness
Mandatory Compliance Submissions: Merchant bankers must ensure issuing companies adhere to all relevant legal and regulatory standards and submit a detailed compliance report to SEBON.
Monthly Financial Literacy Programs: Each merchant banker is required to conduct at least one financial literacy program every month to raise investor awareness regarding the securities market.
