SEBON: Capital Market Regulator or Manipulator?

Nepal Investors Forum and Share Laganikarta Sangh Nepal have issued a joint statement expressing strong disagreement over SEBON's unveiling of the 51 companies deemed overvalued by the regulatory board itself.

No capital market regulator of the world can discourage investors from investing in companies that it lists on the exchange itself, the statement reads. The press release states that this bold statement from the regulator has put the investment of numerous investors at risk. As a capital market referee, the statement states that the regulator should be unbiased about the companies listed on the exchange. Additionally, companies that have significant government investments like NRIC, CIT, RBCL, STC, HIDCL, and UPPER have made it to the list, which the joint letter states is obscure, given that investors had trusted the companies because of government involvement and their future prospect.

Furthermore, the Nepal Investors Forum and Share Laganikarta Sangh Nepal state that investors have different investment strategies and methods of valuing a company. As such, they express concern over whether the regulator expects investors to follow the valuing strategy that the regulator devises on its own. Investors deserve the right to make their own financial decisions, which is an internationally acclaimed fact, the joint release states.

The joint statement also points out that SEBON has better things to work on; reducing the broker commission, solving the problems of Meroshare, closeout, and extending the reach of the capital market with the nationwide establishment of brokerage offices.

The joint statement has expressed grave concerns about the rising involvement of the regulator as a stock market manipulator itself. Expressing strong disagreement at SEBON's activity, the Nepal Investors Forum and Share Laganikarta Sangh Nepal plead investors to invest without fear.