Kathmandu. In the absence of the appointment of the chairman for a long time, the permission for the public issue of securities by the Securities Board of Nepal (SEBON) almost came to a standstill. As a result, many companies’ IPOs, rights and FPOs as well as mutual funds and bonds were stuck in the pipeline for a long time.
The government appointed Santosh Narayan Shrestha as the chairman of SEBON on November 14. With the arrival of the new chairman, there was hope among the general investors to the directors and officials of the company that the process of allowing the public issue of securities would move forward. However, in the initial phase, Chairman Shrestha could not speed up the approval process.
The IPO of Seshgari Hydropower Company has been stuck in the pipeline of Sebon for a long time. About a year and a half ago, the Public Accounts Committee directed companies with a real net worth of less than 90 percent not to allow IPOs.
It was reported that representatives of hydropower companies had openly accused Sebon Chairman Shrestha of asking for commission for IPO permission by deputing people after not getting ipo permission for a long time. A complaint was also lodged with the Commission for the Investigation of Abuse of Authority regarding the commission.
The CIAA team reached the Sebon office on May 24 and returned after questioning the employees. Chairman Shrestha later challenged him to prove that he had asked for the commission. But now the matter has calmed down.
After the CIAA team arrived for the investigation, Sebon has woken up from his slumber. Although SEBON has not allowed the IPO since the last week of April, FPOs, right shares, mutual funds and bonds have been allowing.
Swarojgar Laghubitta and Win Nepal Laghubitta Financial Institution got FPO approval from Sebon in the last week of April.
Similarly, three companies have got permission to issue right shares. Rapti Hydro and General Construction, Asian Life Insurance, People’s Power, Barun Hydropower and Nepal Insurance have been given the right share permit.
Similarly, three banks have been allowed to issue debentures since the last week of April. Nepal Infrastructure Bank, Nepal SBI Bank and Shine Resunga Development Bank have got permission to bring the bonds.
SEBON has also given permission for the issue of units of Global IME Samunna Yojana-2.
On the other hand, Sebon has removed the IPO of 13 companies with real net worth less than Rs 90 and one company’s IPO from the pipeline, saying that the investment of the public is at risk. Sebon has also directed these companies to submit the details again and apply for an IPO.
Meanwhile, Sebon has also taken action against eight stock brokers and three capitals for violating anti-money laundering rules. Sebon has sought an explanation from a hydropower company for selling shares in violation of the rules.
