Do Not Invest in Unregistered Companies: SEBON

Wed, Jul 29, 2020 3:04 PM on Latest, Stock Market,

Securities Board of Nepal (SEBON) has issued a notice cautioning investors to stay away from investing in the offerings of companies not listed in SEBON. 

Some newspapers and media portals had published the announcement of Sagoon Enterprises, a company supposedly registered abroad (but not in Nepal), where investors were invited to invest in their shares.

SEBON has said that this has raised its serious attention.

According to the Securities Act 2063, any company willing to issue shares must be registered in SEBON. And if it wishes to issue shares to more than 50 investors, the issue should be made public. Thus, issuing shares in Nepal without the permission of the board is an illegal act altogether.

Any investor who puts their fund in shares of such unverified companies will not be safeguarded by the existing legal provisions. SEBON has thus cautioned the general public to only invest in companies whose securities issue is legally permitted by the existing laws.