According to the recent budget presentation for the fiscal year, 2079/80 has announced that foreign employee who has a work permit can apply for IPO for the 10% reservation. The aim of doing so is to encourage Nepali workers in foreign countries to send money legally.
According to Janardan Sharma(current finance minister of Nepal), they are bringing this policy so that foreign workers are encouraged to send remittances through legal which helps the country’s economy the most. As people are investing in digital currency (like cryptocurrency, bitcoin, and many others), the Remittances coming into the country have drastically decreased. To combat this situation they bring a policy through the discussion of NRB, the governor, and the Finance Minister.
It is not easy as it sounds to get implemented but this is an excellent step from the government. I hope they stick to this and make this work as soon as possible. This policy works for those who have got work permits from Nepal Government and not for those who go abroad For study and other visas except working visas. Nepali People who are in Golf countries will get the maximum benefits from this if they send Remittances to legal ways.
Also Check: Upcoming IPO in Nepal 2022
According to the Nepal Labour Migration report 2022, the total number of Nepalese people working in foreign countries is 3.5 million. Among these, approximately 15% of people are applying for Initial Public Offering(IPO) i.e. around 5 lakhs people. This will increase the IPO allotment rate for foreigners who send remittances to Nepal. For example, If a company issues twenty lakhs unit shares IPO to the general public, 10% of twenty lakhs i.e. two lakhs unit shares will be reserved for foreign workers. And these 2 lakhs unit shares will only be allotted for foreign workers, increasing the IPO allotment rate.
Requirements Needed To Be a Part of 10% IPO Reserved Quota:
To be a part of this 10% IPO reserved quota, one must have got a Labour acceptance(श्रम स्वीकृति) letter from the Nepal government. Additionally, H/She must have an unfreeze Demat account, Mero share account, CRN number and verified bank account (remittance account).