SEBON Warns Against Public Issue and Participation in Projects Unapproved by Board

The Securities Board of Nepal (SEBON) has warned investors to stay alert and not to fall prey to unapproved issues and projects.

Issuing a media release, SEBON stated that earlier Manakamana Daraudi Hydropower Company Limited (MDHCL) on 2080/02/24 had advertised in a newspaper asking the public to invest in the company's shares, which has come to the attention of the Board.

Referring to Article 27(1) of the Securities Act 2063, the Board stated that the law has the provision for companies to register their securities for issuance with the Board. In addition, Article 29(1) also requires companies to consider issuances public if securities are sold to more than fifty individuals.

In accordance with the existing law, issuance od securities of any company without the approval of SEBON is considered illegitimate.

The Board also requested the general public/investors to not fall victims to such issuances as well as refrain from participating in unapproved issuances and projects.

See official notice here: