Nepal Rastra Bank, Central Bank of Nepal (NRB) has issued a notice in the national daily on November 12, 2014 regarding the valuation methodology of the sale proceeds of a non-listed company (the “NRB Notice”). The NRB Notice is applicable to the repatriation of the sale proceeds by the foreign investor.
NRB Notice provides that the share price of the non-listed company should be determined on the basis of the fair value amount of the assets and liabilities pursuant to the Nepal Financial Reporting Standard 3: Business Considerations.
The notice can be found in http://www.nrb.org.np/fxm/notices/investment_in_nepal.pdf. The notice is in Nepali language.
The Unofficial English translation of the said NRB Notice is as follows:
NEPAL RASTRA BANK
Foreign Exchange Management Department
This notice has been published for the information of all the concerned relating to repatriation of the proceeds arising out of sale of shares or investments of the unlisted companies where such investments have been made after receiving approval from the concerned body of the Government of Nepal and this Bank. It is hereby notified for the purpose of Sub-section (1), (2) and (3) of Section 10C of Foreign Exchange (Regulation) Act 1962 (2019) that this Bank will provide foreign exchange facility for the repatriation of such proceeds to the foreign investors as derived from the assets of the organization and based on the financial statements audited and certified by the recognized auditor as follows: