KATHMANDU: The Securities Issuance and Transaction Regulations for Small and Medium Enterprises (SMEs) 2025 are nearing completion, with the government set to implement these guidelines soon.
The regulations, formulated under the guidance of the Securities Board of Nepal (SEBON), are now in the final stages of approval.
Nepal Stock Exchange (NEPSE) is set to submit the finalized draft of the regulations to SEBON by mid-April.
Although the draft has already been prepared, it will undergo multiple discussions in NEPSE’s board of directors before it is approved. It is expected that the approval will be granted in the third meeting, as the steering committee addresses various considerations.
The regulations will enable small companies to issue ordinary shares (IPOs) for the first time, setting the paid-up capital limit of SME companies at Rs 250 million. The minimum application requirement for IPOs is set at 500 units, which would cost at least Rs 50,000. This new provision has been implemented to account for the higher risks associated with SME companies.
Furthermore, NEPSE is preparing a separate platform for listing and trading the securities of startup companies. A specialized trading site will ensure transparency and manage the transactions related to SME shares.
The system will allow shares to be traded with a minimum price fluctuation of one rupee, compared to the existing system where share prices cannot be changed by even a single paisa.
With these new regulations, Nepal aims to foster growth in the SME sector by providing more accessible capital raising opportunities for small businesses, while also ensuring a secure and regulated trading environment.
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