Investors file complaint against Sahara Bikas Bank for calling SGM to cancel 250% right share

Investors have filed complaint against Sarlahi-based Sahara Bikas Bank. The complaint has been registered at Securities Board of Nepal (SEBON), Jawalakhel against the company’s decision to call Special General Meeting (SGM) to cancel its already endorsed 1:2.5 right shares. The investors say that this move by the bank is in violation to Securities Issue and Allotment Guidelines 2074, which says that a company that has already endorsed right shares through AGM cannot cancel it. Sahara Bikas Bank, on the other hand, decided to cancel the issuance of right shares as it is going under acquisition by Deva Bikas Bank. It had decided to issue 250% right share to its shareholders after its merger with Sahayogi Bikas Bank was cancelled. Securities Issue and Allotment Guidelines 2074, that came into effect from Jestha 12, 2074 says that if a company has endorsed right shares, the company must execute it. Going against the guideline is directly in violation of the guideline.