The Securities Board of Nepal (SEBON) has rolled out new IPO due diligence standards effective April 14, 2026, aimed at strengthening transparency and credibility in the capital market. The framework introduces a three-tier risk-trigger system, mandatory due diligence certification by Issue Managers, and absolute disqualification for companies with adverse or disclaimer audit opinions. Expert reports must now be submitted within 30 days, with only a limited extension allowed. Red flags include excessive receivables, related-party transactions beyond 30% of assets, and signs of legal or financial non-compliance. Sector-specific thresholds have also been set for manufacturing, tourism, hydropower, and investment companies, ensuring tailored scrutiny.
Download