Century Commercial Bank Kalanki branch denied accepting Right Share form of non-demat shareholders; SEBON says it's against rules

Century Commercial Bank Limited (CCBL) is issuing 10:4 (40%) right share to its shareholders from Shrawan 16, 2074. The rights issue will remain open for 35 days before closing on Bhadra 18, 2074 i.e. coming Sunday. On Wednesday afternoon on Bhadra 14, 2074, a Shareholder went to Kalanki branch of Century Commercial Bank to apply for right shares. The shareholder was dumbfounded when employees of CCBL refused to accept his share just because the shareholder did not have Demat A/C. The employees informed shareholder that their system will not accept any right share application without having Demat A/C number of the concerned applicant. Shareholder lodged complain with Securities Board of Nepal (SEBON) regarding this issue. SEBON clarified that Demat A/C has not yet made compulsory to apply for right shares. However, it is mandatory to have Demat A/C to apply for Initial Public Offering (IPO) or Further Public Offering (FPO). SEBON informed shareholder not to worry and deposit the form from Kalanki branch of CCBL itself. Furthermore, SEBON has directed the issue manager, Civil Capital Market Ltd., and corporate office of CCBL to rectify the error. If you are the shareholders of any right issuing company and having not maintaining any demat account yet, then do not hesitate to talk to the respective issue manager and file a complaint in SEBON of same, upon any trouble on accepting your form. Such unfair practices can only benefit issuing companies, since they will get to sell unsubscribed share in auction to the public which turn out to be really profitable for them. Auctioning huge units of unsubscribed shares to the public is always profitable for the company. This somewhere deviates the main focus of the company from their core business activities.