Cheque clearing delayed in NIBL FPO: Higher liquidity, Holidays & bulk cheques to blame

Nepal Investment Bank Limited (NIB) had issued 90,69, 388 units shares as a part of Further Public Offering (FPO) from Falgun 11 to Falgun 14 2072. The FPO was issued at Rs 601/unit. Securities Board of Nepal (SEBON) had barred the promoter Shareholders of NIBL(NIBPO), BoD members and their immediate families from applying to this FPO.

Interested investors applied minimum of 10 to maximum of 2 lakhs units.

It's has been almost two weeks since the closure of FPO of NIBL. Many investors are in confusion as their cheques for the FPO have not been cleared. ShareSansar took this issue with the officials from Citizen Investment Trust (CIT), the issue manager of the FPO, and NIBL Capital Markets Ltd.

Narayan Prasad Ghimire of CIT, said, "Long public holidays and higher liquidity in Bank and Financial institutions (BFIs) have slowed the cheque clearing process. "

Badri Pyakurel of NIBL Capital Markets said, " We have received high number of cheques through applicants in FPO of NIBL. We have sent those cheques for clearing which seemed to have taken longer time than usual due to the volume we received."

Mr. Pyakurel downplayed that the higher liquidity among BFIs have slowed the clearing of cheques. Few cheques might have bounced while few cheques may have been written incorrectly, added Mr. Pyakurel.

Cheques written incorrectly do not go for clearing. Investors should check their balance regularly and call their respective Bank to see if their cheque were bounced for various reasons.