While the investors who are waiting for the initial share issue (IPO) are looking for the reason for the lack of new issues, more than 100 companies' applications have been piled up in the Nepal Securities Board. Even though the new chairman has been appointed as the leader of the board, the main reasons for not immediately accepting the new IPO are the old effects of the leadership vacancy, the change of financial year and the situation where the applicant company has to submit updated audited financial statements of the last financial year. The ups and downs in Sebon's leadership had a direct impact on the IPO approval process. After the then chairman Santosh Narayan Shrestha resigned from the post on 4th Baisakh, 2083, the board remained without a full-time chairman for about two months. On June 5, the government Dr. Gopal Prasad Bhatt was appointed as the chairman and he formally assumed office on June 15, i.e. June 29. During the chairman's vacancy, the approval process of various securities issues, including IPOs, was affected.
But when Bhatt assumed responsibility, another practical problem had come to the fore as the financial year 2082/83 was coming to an end. After the end of the year, the financial condition of the companies that applied for IPO cannot be evaluated based on the old details, so Sebon ordered to update the details according to the new financial year. Sebon Chairman Bhatt clarified in the last interview that he joined the board at the end of the financial year and that the existing rules demand the audited statement of the previous financial year. According to him, the applicant companies are now submitting the audited report of the last financial year as the financial condition of the company, net worth and other indicators have to be studied from new details.
Bhatt said, "Those who have given all the financial reports immediately, we will forward their files." According to him, the application of the company that submits the necessary financial and other updated details will be studied and proceeded for approval. When will the IPO come? According to Sebon's latest indication, the answer will depend largely on how quickly the applicant company submits updated documents. Chairman of the Board Bhatt said that after completing the audit of the financial year 2082/83, the file of the company to submit the new audited financial statements, net worth, updated details of directors and equity and the prospectus will proceed gradually.
Sebon has also prepared to proceed with the stalled IPOs by studying them according to the new financial review standards. Also, Chairman Bhatt said that the work of making 'Standard Operating Procedure' i.e. SOP is also underway to complete the process of IPO application and approval within a certain time frame.
