01 Jun, 2023

How to apply IPO from abroad | 10% Quota for Nepalese working abroad with labour permit

 10% Quota of IPOs issued for Nepalese working abroadYou can now apply for all the IPOs issued in Nepal from abroad since the Securities Board of Nepal (SEBON) has implemented the "Securities Issuance and Allotment (Sixth Amendment) Guideline, 2079 BS." Now that the new guidelines are in place, Nepalis working in foreign countries with a valid labor permit from the government of Nepal can actively participate in the Nepali Share Market with a 10% quota on all the IPOs issued.Check if you are eligible for the 10% Allotment of IPO or Not. A remittance savings account is a must to be

eligible for the 10% IPO allotment.To be eligible for the 10% quota, you will need to meet the following requirements:You must be a Nepali citizen who is employed abroad and has a valid visa and labor permit (labor permit) issued by the Nepalese government.You need to open a remittance savings account in your choice of Bank / ASBA Member bank(To know about How to open a remittance savings account, Click Here) Then, you need to collect your CRN number and apply for the DEMAT ID of the remittance savings accounts you recently opened.After opening a remittance savings account, you need to deposit at least Rs. 50,000 in the account to qualify for the 10% allotment of IPOs.Work Permit expiry date should be valid to apply for each IPOs.**Above requirements may vary from bank to bank.Do you already have a normal savings account to apply for an IPO? Here’s what to do when applying for the 10% IPO quota.There is an option where the bank lets the users change their existing account schemes. You don’t need to open a new account, but since the account must be a remittance savings account in order to apply for the 10% allocated IPO, you can request your bank to change your existing savings account to a remittance savings account. (Note: Some banks also allow customers to open remittance savings accounts even if they have normal savings accounts maintained at the same bank)If you already have remittance savings account, but you are wondering if you need to open another account to be eligible for the 10% IPO quota.The answer is no. Even if you had already have a remittance savings account before the scheme was publicized (i.e. before 2079/07/17), you won’t need to change the account type. However, you will have to submit your shram swikriti (श्रम स्वीकृति).What is a Remittance IPO saving account?A Remittance IPO saving account is exactly similar to a Remittance savings account, with the same procedures to create an account. Lists of banks with separate deposit schemes that are currently providing a Remittance IPO Saving Account and Remittance savings account for 10% IPO allotment.S.NBank Name Account Name1.Citizens Bank Ltd.Remittance IPO Savings Account2.Kumari Bank Ltd.Kumari Remit IPO Saving Account3.NIC Asia Bank Ltd.Sarbashrestha Remittance Bachat Khata IPO4.Muktinath Bikas Bank Ltd.Muktinath Sambriddhai Remit IPO Bachat Khata5. Global IME BankJanma Bhumi bachat khataIf you feel the need of comparing interest rates from different banks of nepal, Click Here.Our team actively seeks ways to ‘saralify’ your banking experience. If you require assistance from us, throughout your banking processes, we’re always here for you. Contact us: Whatsapp/Viber: 9851361107Liked this blog? Your friends and family members working abroad might like it too!Share this blog with your family member working abroad or your friend who need to open a Remittance Savings account or Remittance IPO savings accountPlease provide us with your feedback in the comment section below.Connect with us for Banking updates onFacebookInstagram