The Securities Board of Nepal (SEBON) has enacted the Securities Issuance and Allotment (10th Amendment) Guidelines, 2082, to update the current Securities Issuance and Allotment Guidelines, 2074. This amendment has been issued by utilizing the authority granted under Section 118 of the Securities Act, 2063.
As stated by SEBON, the purpose of this amendment is to enhance regulatory measures concerning the issuance of securities and the allocation process. A new sub-section (7) has been appended to Section 40 of the 2074 guidelines. The newly introduced clause stipulates that:
“All organized entities registered with the Board are required to arrange for the dividend tax related to bonus shares distributed to their shareholders to be settled and disbursed directly by the respective entities from the dividend itself.” This mandate guarantees more transparent compliance and a more efficient procedure for tax settlement during the allocation of bonus shares.
