Homework started to remove the provision of 10 kitta in IPO

 'Now the poor will not even get 10 kitta of IPO'

Homework has been started to remove the provision of applying for 10 lots of shares in the IPO. In order to make the share market participatory, the provision to apply for 10 kitta of shares implemented by the regulatory Nepal Securities Board will be reviewed, said the officials of the board.

It was mentioned at the time, that the provision of 10 kitta was not for a long time. Accordingly, the time has come for reconsideration, the board said. Spokesperson at the Nepal Securities Board, said that discussions are underway in the board to remove the provision of applying for a minimum of 10 kittas, which has been implemented since Chaitra 27, 2075.

“While implementing the provision of 10 kittas, it has been made clear that it will be reviewed as per the need and accordingly, now is the time for review. Discussions are going on about how many kittas to make", He said.

The board has already made provision for 50 kittas from book building. Stating that the provision of 50 kittas will be implemented during the implementation, he said, "The company will be implemented according to when it comes to book building. The best cement has come out to issue IPO from the book building process." Maybe he will implement it. ' 

The Board has also acknowledged that the provision of 10 kittas has greatly helped in market expansion. However, to get the same 10 kittas now depends on luck. The Board understands that there is no justification for keeping this provision.

Later, the number of investors had increased significantly after the provision of 10 kittas. One of the reasons for the increase in market volume is the provision of 10 kittas. At present, there are more than 2.5 million demat accounts, according to CDAC.

This was stated while implementing the provision of 10 kittas

Implementing the provision of 10 kittas, it was said, 'To increase the access to capital market for students, housewives and small capitalists by changing the current system of applying for at least 50 kittas in public eviction and to make it more effective this year's One Nepali One Demat Account Campaign. The board has made an arrangement to apply for a minimum of 10 kittas in public eviction.

Investor criticise

Investors have started criticizing the board saying that it is going to remove the provision of 10 kittas. It is alleged that the board has paid attention only to big investors. 

Now, if the poor do not get even 10 lots of IPO, the words of investors' dissatisfaction have started pouring on the walls of social media saying that they will not be given food.

Recently, the interest of the general public towards the capital market has been increasing. Investors are particularly attracted to the initial public offering (IPO).

Even those with small capital have no problem raising investment as they can apply for only Rs 1,000. There is an arrangement to apply according to one's own money, but the share distribution has been going on by the method of round robin.