Kathmandu. The Securities Board of Nepal has directed Butwal Power Company to suspend the sale of shares of Nyadi Hydropower for the time being.
Issuing a notice today, the Securities Board of Nepal has directed Butwal Power to suspend the sale of shares of Nyadi Hydropower for the time being. “The directors of Butwal Power have also been found to be directors in Nyadi Hydropower,” reads the notice, “Therefore, the sale of shares of Nyadi Hydropower by Butwal Power appears to be contrary to Sub-rule (1A) of Rule 38 of the Securities Registration and Issue Regulations, 2073.” ’
According to the Securities Board, it has been directed to submit the exact details along with the company’s opinion in this regard and to postpone the sale of the shares for the time being.
Butwal Power had issued a notice on May 27 stating that it was selling 3.1 million units of shares of Nyadi Hydropower. According to section 11 of the Directive on Prior Approval and Regulation of Public Issue of Shares of Power Related Companies issued by the Electricity Regulatory Commission, 2078, there was a provision to publish the notice of share sale 15 days in advance for the information of the general public.
Butwal Power has 10.75 million units of shares in Nyadi Hydropower. Butwal Power had decided to sell 3.1 million units of shares in the secondary market.
