SEBON directs investment companies to be listed for preventing money laundering

KATHMANDU, MARCH 7: The Securities Board of Nepal (SEBON) has directed investment companies with a paid-up capital of 5 million rupees and more, or an annual turnover of 10 million rupees and above, to be listed. 

As per the Money Laundering Prevention Act, 2007, the Board is designated as the regulatory body for investment companies to prevent money laundering.

It published a notice with such the said instruction in accordance with Rule 20 of the Money Laundering Prevention Regulations, 1996.

To be listed,  the related companies are required to submit an application along with the following details: the board of directors’ information (name, address, contact number, and shareholder list), the company's updated memorandum and articles of association, updated registration certificates, proof of permanent account number registration, and other relevant details.

Additionally, the details of the Chief Executive Officer (name, address, contact number), a copy of the decision made by the board of directors regarding the listing, the authority given by the board for the listing, audited financial statements including annual turnover, and documents regarding the company's paid-up capital must also be submitted.

On January 2, the government had published a notice in the official gazette stating that the SEBON would regulate investment companies with a paid-up capital of 5 million rupees or more, or those with an annual turnover exceeding 10 million rupees, to prevent money laundering. The regulation set Jan.29 as a date for staring the regulation. 

However, for investment companies with a paid-up capital of less than 5 million rupees or an annual turnover of less than 10 million rupees, the regulation date, as per the notice, would be fixed by the Board based on risk factor.