Regulatory Alerts2026-04-08
Guidelines on Review and Verification of Financial Statements Submitted for Initial Public Offering 2082
The Securities Board of Nepal has issued guidelines mandating the review and verification of financial statements for entities applying for an Initial Public Offering (IPO) under Section 90 of the Securities Act, 2063. The document establishes specific general and sector-based criteria, including thresholds for trade receivables, related-party transactions, and profit margin fluctuations, that trigger mandatory expert verification. It further defines the strict qualifications for financial experts, their detailed scope of work regarding forensic accounting and fraud detection, and the procedural obligations for issuers and promoters to facilitate this review.
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