Kathmandu. The draft of the Securities Dematerialization Work Operation Directive-2082 (IGIN Directive) prepared by the CDSC has proposed some provisions regarding the process of merger and separation.
These guidelines are currently awaiting approval from the Securities Board of Nepal (SEBON). This directive will come into effect only after the approval of the Securities Board. However, during a discussion held by the CDSC on Monday to inform about the draft guidelines, there was a mixed process on the issue of double engine. However, it is doubtful that the implementation of the IGIN directive will be in place when the representatives of the Securities Board of Nepal and NEPSE are not present in the discussion.
Aigene Mixing Process
If different IGs are assigned to any securities, CDSC may, upon the request of the corporate body, mix the IGN provided as per the requirement.
If securities provided by different IGs are to be merged into the same IGN, the concerned institution shall submit an application to CDSC with the following documents and proofs:
- Certified copy of the decision passed by the General Assembly of the concerned body regarding merger with IGN.
- Evidence that the national level daily newspapers and other media have published information at least twice regarding the merger of securities.
- Proof of the Securities Board’s agreement to a securities mix.
- Evidence that the stock exchange has been informed of the merger of securities.
- Self-declaration of the concerned body in respect of the need for a different IGN as per the prevailing law.
The IGN established by the merger of the corporate entities with each other will have to be placed in the concerned securities group in accordance with this guideline.
Engine separation process
If a single IGN is assigned to any securities, the CDSC may, at the request of the concerned corporate body, separate the IGN provided as per the requirement.
If the IGN is to be set aside, the concerned organization shall submit an application to the CDSC with the following documents and evidence:
- Attested copy of the decision passed by the General Assembly of the concerned body regarding the separation of IGN.
- Evidence that the information regarding the separation of securities has been published at least twice in national dailies and other media outlets.
- Evidence that the Securities Board was informed of the separation of securities.
- Evidence that the stock exchange has been informed of the allocation of securities.
- Self-declaration of the concerned organization regarding the requirement of different IGs in accordance with the prevailing law.
