The Government of Nepal has taken a step to include Nepali citizens working abroad in the capital market by reserving 10% of IPO shares for them under a special Remittance Quota, effective from Kartik 17, 2079 (November 3, 2022).
The Securities Board of Nepal (SEBON) has implemented the guidelines Securities Issuance and Allotment (Sixth Amendment) Directive, 2022, which allows Nepalese citizens working abroad to participate in stock markets of Nepal. Under this guideline, public companies are required to reserve 10 percent of their total IPOs for Nepali citizens working abroad, who must hold valid employment approval from the relevant government authority. This initiative provides a formal and accessible way for migrant workers to participate in Nepal’s economic growth through the capital market.
What is Foreign Employment IPO Quota?
A Foreign Employment IPO is an initial public offering specially designed for Nepali citizens working abroad. This provision was introduced from the Fiscal Year 2079/80 budget.
The main goal of foreign employment IPOs is to encourage Nepali workers abroad to invest in their home country and remit their income through legal banking channels.
What are the eligibility criteria to apply for the IPO foreign employment quota?
Not everyone working abroad qualifies for this category. You must meet specific conditions.
- The applicant must be a Nepali citizen working in foreign country.
- Applicants must have a valid labor work permit (Shram Swikriti) issued by the Department of Foreign Employment.
- Applicants must have an ASBA enabled remittance bank account.
- At least Rs. 50, 000 remittance should be deposited through formal remittance channels in the account within 6 months period.
- Should have a Demat with CRN number and MeroShare account.
How to open a remittance saving account?
To apply for an IPO foreign employment quota, a remittance saving account is mandatory. Documents like work permit and visa are required to open a remittance saving account. Global IME Bank offers an online account opening facility where applicants can open bank accounts easily from any country.
- Visit the bank website.
- Click on the Open Account section or directly visit the link http://eaccount.gibl.com.np/#/ .
- Select the preferred branch and choose the country from where you are applying.
- Select the Global Remit Saving account and click on Apply Now for further proceedings.
- Fill all the information and attach all the required documents: citizenship, passport, visas and submit the application.
After verification you will receive the bank account numbers in email and phone number.
How to apply for an IPO for foreign employment quota?
If you are qualified for an IPO for foreign employment quota you can apply through meroshare.
Step 1: Login to meroshare.
Step 2: Navigate to My ASBA section.
Step 3: Under My ASBA section you will see all the opening shares.
Step 4: Click on the company issuing shares (reserved for foreign employment) and enter the number of shares(kitta) and CRN number.
Step 4: Submit the application.
If you have a Global Smart Plus App you can apply directly through it. Also you can view the issuing IPO, check IPO results and live market (NEPSE) through an app.
Common Mistakes That Cause IPO Rejection
- Expired work permit
- Insufficient Balance during application
- Incorrect bank account linked to MeroShare
- Inactive Demat account
- No remittance in the account during the last six months
Conclusion
Applying for an IPO for foreign employment in Nepal is one of the smartest ways for migrant workers to diversify investment opportunities. With a separate quota, higher allotment chances, and a simple online process, it’s an opportunity that shouldn’t be ignored.
Frequently Asked Questions
Can I Use a Normal Savings Account for Foreign Employment IPO Quota?
No, only remittance saving accounts are accepted for this category. A CRN number linked to a remittance account is required.
Can I open demat, meroshare and TMS accounts online?
Yes Global IME Bank offers Ek Sath 5 account where you can open demat, meroshare, TMS, CASBA and saving accounts online via Digital Universe.
Can I apply if my labor permit expires?
No, your labor permit must be valid at the time of application.
Can I apply for both general and foreign employment IPO?
No, you can apply under only one category at a time.
How to check IPO allotment status for Migrant Workers?
You can check through the ipo result check portal or meroshare after the allotment result.
Does foreign employment IPO have a locking period?
No, foreign employment IPOs do not have a locking period. You can trade after listing in NEPSE.
