The NRN Nepal Development Fund has received approval to issue its Initial Public Offering (IPO), clearing a key regulatory hurdle for the fund to move ahead with its proposed Rs 10 billion investment plan in Nepal.

According to CEO Anal Raj Bhattarai, the Securities Board of Nepal (SEBON) completed the required legal and procedural approvals on Tuesday. The fund had already completed the necessary preparations for the public offering.

Under the revised structure, up to 85% of the fund’s shares will be offered through the IPO to Nepalis living abroad. The fund had previously been permitted to allocate up to 51% of its shares through the IPO, with the latest approval increasing the allowable allocation to 85%.

The approval allows the fund to proceed with both its IPO and proposed investment projects. The fund has been established as a platform to channel capital from the Nepali diaspora into Nepal, targeting areas including infrastructure, productive industries, economic development and the capital market.

The initiative aims to mobilize not only overseas Nepali capital but also the knowledge, skills and expertise of the diaspora toward investment and economic activity in Nepal.

Former NRNA President Kumar Pant said the approval followed seven years of efforts and described the legal changes enabling the fund as a significant milestone for diaspora investment in Nepal. NRNA President Dr. Hem Raj Sharma has also expressed commitment to accelerating the fund’s activities.

The IPO is expected to provide a more structured mechanism for overseas Nepalis to participate in Nepal’s investment opportunities while helping channel diaspora capital into productive sectors of the domestic economy.

With regulatory approval now secured, the fund can move toward the next stage of its IPO process and Rs 10 billion investment programme.