Now, companies with a maximum paid-up capital of Rs 25 crore will be traded separately in the secondary market. With the implementation of the 'Securities Issuance and Trading Regulations of Small and Medium Organizations 2081' by the regulatory body Nepal Securities Board, the way has been opened to buy and sell shares of companies with small capital through a separate platform.

 The board has implemented the rules from Thursday. The board has also given instructions to Nepal Stock Exchange (NEPSE) and CDS and Clearing to implement the regulations.  With the implementation of the

regulations, NEPSE will draft the regulations related to securities trading and listing of small and medium-sized organizations. Once the regulation is approved by the Securities Board, the policy path will be open for small companies to trade separately in the secondary market.

However, with the release of the regulations, the Securities Board will allow small companies to issue shares. In this way, companies that have received permission from the board must be listed in NEPSE for secondary market transactions. NEPSE will start trading through a separate trading system (platform) for these companies. 

When a new company with a capital of up to 25 million rupees issues shares, it will be done according to this provision, but the regulations are silent about what will happen to small companies (capital less than 25 million rupees) which are currently listed in NEPSE. The Nepal Securities Board (SEBON) has made regulations to encourage small and medium companies in all sectors to issue IPOs.  In the

regulations, it is provided that companies with an amount of less than 250 million can issue shares after completing the full period of one financial year of operation. Such companies can do initial issue of securities (IPO) with less than 30 percent and not more than 49 percent of the capital. But after the issue of IPO, the company's paid-up capital cannot be more than 25 crore rupees.

'The remaining shares can be issued to the general public if the share ownership of the founders of the company is not more than 70 percent or less than 51 percent,' the regulation says, 'The company issuing the shares has completed at least one year of operation as a public company, and one year of financial statement accounting. If there is a test and the general meeting is completed, it should be.' 

A credit rating is not mandated for a listed company while issuing an IPO. But the regulation also mentions that the securities board can impose credit rating if it deems it necessary. There is also a provision in the regulation that when small and medium companies issue shares, if less than 50 percent of the shares are sold, this process itself will be cancelled. 

It will be possible to apply for a minimum of 500 shares in the shares of that company. The maximum limit for applying for shares will be as mentioned in the prospectus of the company. "When an organization calls for an application for the purchase of shares, it must ask for only 50 percent of the face value of each share with the application, according to the provisions of the current law on companies," the regulation says. If there is a provision to demand more than 50 percent of the amount while collecting capital by publishing the financial statement, it can demand more than that with the application.'  The

rules provide that the listing of the company can be cancelled. "The proposal for dissolution of the company must be taken to the general meeting and at least 75 percent of the shareholders who own at least 90 percent of the shares must be present at that meeting," the regulations state, "an automatic electronic transaction system must be established for the company's share transactions." 

Even now, shares of companies with a capital of less than 25 million rupees are being traded in the stock market. But according to this regulation, a separate system has to be established for the transactions of companies issuing shares. As the effect of the transactions of all the companies listed in the currently ongoing Nepal Stock Exchange is in the NEPSE index, the main indicator, a separate arrangement is going to be made for the transactions of small and medium companies. 

Now when all companies (big and small) are doing business in one place, it is having an impact on the overall market. In this way, small companies are listed and traded separately, experts say that changes in the price of small companies will not affect the overall market.  This system also helps small companies such as start-ups who are unable to enter the stock market despite the need for

capital. But investors say that there should be some strictness in the criteria for issuing shares as the share trading of such short-term companies can increase the risk. After the implementation of the