May 25: Securities Board of Nepal (SEBON) has made ASBA mandatory from the upcoming FY. SEBON, in a bid to make ASBA more effective, has given various directions to banks and financial institutions (BFIs).

Issuing a circular on May 24, SEBON directed BFIs to give their employees ASBA training at least once before the end of current FY and periodically in the coming FY. In the circular, SEBON mentioned that upon any fault seen during timely inspection by the regulator, related BFIs will be barred from operating ASBA and could lead to cancellation of ASBA registration.

Moreover, ASBA certified BFIS must collect applications and application money daily and submit them to issue manager and board through electronic medium. According to SEBON, share applicants should write their names in English capital letters. Similarly, the share applicants must write down DMAT account number in English.