SEBON Issues Notice Against Buying Pre-IPO Shares Through Informal Channels

The Securities Board of Nepal (SEBON) has issued a public notice cautioning people not to buy or sell shares labeled as “Pre-IPO” through unofficial means. The board stated that it has received complaints about companies promoting such shares via social media platforms like WhatsApp, Viber, Facebook groups, as well as through email and SMS.

According to SEBON, these companies are claiming that they will soon issue shares to the public and are collecting money from individuals by offering Pre-IPO investments. The board has expressed serious concern over these activities and has warned that such practices are not allowed under current rules. SEBON clarified that there is no legal provision for selling Pre-IPO shares to the general public. As per existing laws, if a company offers shares to more than 50 people at once, it must first go through a proper public issue process with approval from the board.

The notice also emphasized that no one is allowed to publicly invite people to buy or sell company shares without SEBON’s permission. Any activity that goes against these rules is considered a violation of the law. The board has urged all investors to stay alert and avoid getting involved in such schemes. It also warned that those found involved in such activities may face legal action.