Experts Take: "Single cheque directive should not apply to FPO of NIBL"

SEBON (Securities Board of Nepal) has issued directions discouraging the third party application mandating separate cheques on the application forms of public issue. There is a lot of confusion that SEBON is yet to clear regarding the directive being applied to the FPO of NIBL retrospectively. Here is the opinion of the experts regarding the same.   Rajendra Maharjan Investor I think the SEBON’s step to discourage the third party application by mandating separate cheques is baseless. Suppose if a person can file 500 IPO application,that person may already have that many bank accounts because s/he needs to withdraw money after the refund. I don’t think that this step taken by SEBON will control the third party application problem. Strictness should be used while opening a bank account, only the respective person should be allowed to open a bank account in his/her name. Dharma Raj Sapkota Swornalaxmi Securities Private Limited (Broker number 37) In Nepal, we see trend that a lot of people files fake application in IPO/ FPO in the name of different other people. I think it’s a good step taken by SEBON to control the third party application problem. This step will definitely discourage the trend of mass application. The main function of SEBON is to regulate the capital market and it is doing it. Bhakta Ram Ghimire Imperial Securities Company Private Limited (Broker number 45) The directive brought by SEBON is good, but I think such directives should have been issued on time. It should have been issued before the FPO issue of Nepal Investment Bank. There are so many genuine public investors who have used their cheques for their friends and relatives and may suffer because of these directives being issued after the FPO. I hope SEBON will only use this directive from IPO of Mero Microfinance. Bishnu Tripathi Investor The directives brought by SEBON to control the third party application is good as there were problems related with it, but in the name of issuing directives, the regulatory body should not scare the investors and their investments. They should have issued the circular before the FPO issue of Nepal Investment Bank. Now, a lot of investors who have used single cheque may suffer and that’s not good.