NEPSE Suspends Khani Khola Hydropower (KKHC) Amidst Controversial Financial Report and Dubious Market Activity

NEPSE has suspended the trading of Khani Khola Hydropower (KKHC). The stock ticker has been removed from the trading portal TMS, and the shares of the company haven't traded in NEPSE today.

NEPSE's spokesperson Murari Parajuli was away from the office and had little information on the matter. The official contact of the exchange could not connect Sharesansar's representative to an official. Nonetheless, many suspect that the exchange's move was triggered by Khani Khola Hydropower's questionable Q4 report.

The company had adjusted the compensation claim to Nepal Electricity Authority in its income. The claim was made by the company for NEA's failure to connect the project with the transmission line. While KKHC had already commenced electricity production, it could not sell its electricity due to NEA's failure to connect the project with the transmission line. While hydropower companies are allowed to make such a claim, it isn't certain whether the NEA will compensate the monetary amount totaling the claim, or whether it will compensate at all.

The company's stock price rocketed after the questionable Q4 report. However, the move was immediately followed by a share dump in a massive volume. Some investors are suspicious that the dumping was brought about by the promoters of the company in a predetermined plot. However, the regulatory board SEBON hasn't provided a formal statement on the matter, and NEPSE did not clarify the reason for the company's suspension. Furthermore, the suspension notice, which was unveiled in the morning, has been removed from NEPSE's website.