SEBON to Allow Shareholders to Purchase higher Number of Right Shares

Jul 16, 2019 11:43 AM Merolagani

Securities Board of Nepal (SEBON) has announced of formulating a mechanism that allows investors to purchase a higher number of right shares than their eligibility.

The move is tended to end the cycle of selling the unsold right shares through auction by the companies.

In a program organized to launch policy and program of upcoming FY, SEBON Chairman, Rewat Bahadur Karki said that the regulator is implementing the mechanism which will allow the investors to purchase higher number of right shares than their eligibility.

Along with this mechanism, investors will be able to apply for more right shares than the rights they have.

Earlier, the investors could apply for the right shares as per their respective rights. However, they could apply for more right shares through obtaining consent letter from other shareholders.

Previously, few companies used to auction the unsold right shares and earn premium whereas most of the companies required auctioning the unsold right shares multiple times.

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