SEBON urges investors to be cautious; “Don’t invest in hydropower companies which haven’t sought approval from board”
Tue, Apr 3, 2018 6:59 AM on Latest, Featured, Stock Market,
The share market regulator of the nation Securities Board of Nepal (SEBON) has sent out a strong message of caution to few hydropower companies which according to it have been engaging in illegal practice of publishing public notices for the issuance of their IPO shares without even seeking its approval. As per the existing shares and securities regulation, the public company willing to issue public shares should seek approval and receive one from SEBON before floating shares to the public which the securities regulation authority has reminded to such companies without mentioning their specific names.
On top of all, SEBON has also urged the investors not to invest in such hydropower companies that haven’t received the approval. Issuing the press statement, the board has informed that it is illegal to issue any public shares without receiving approval from it as per the Securities Act 2063 and has asked all the investors not to fall victim to such hydropowers which haven’t published offer letters by receiving board’s nod for issuing public shares.
