Kathmandu, May 7 — On Wednesday, the Commission for Investigation of Abuse of Authority (CIAA) conducted a raid at the Securities Board of Nepal (SEBON)’s offices and confiscated documents related to 89 hydropower firms that were in the IPO application stage. This action came after accusations surfaced alleging that SEBON officials were soliciting commissions for approvals.
Based on information from SEBON sources, CIAA officials visited the organization’s offices on Wednesday afternoon and seized all documents related to the initial public offering (IPO) that were under examination. This action comes after various media reports and public allegations claimed that SEBON officials sought kickbacks of 5 to 7 percent from business owners as payment for approving their IPOs.
Earlier this week, the matter came up in Parliament, where promoters stated that their applications faced delays of up to 22 months without unofficial payments being made. Ganesh Karki, who heads the Independent Power Producers’ Association of Nepal (IPPAN), previously claimed that the board formerly requested 3%, but this requirement has since gone up.
Following the seizure, the CIAA has launched a formal inquiry into potential misuse of power and fiscal impropriety.
This advancement has sparked new worries regarding the regulatory soundness within Nepal’s stock market and the openness of initial public offering procedures.
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