SEBON yet to decide fate of cheques for multiple applications in NIBL FPO

Securities Board of Nepal (SEBON) has issued following directions to the Merchant Bankers to make the management of public offering more transparent.

In its directive, except for the immediate family members, different account payee checks need to be submitted with every application form.

Niraj Giri, Spokesperson of SEBON, said, "We are still discussing what to do with the many applications submitted through one cheques in the FPO of Nepal Investment Bank. We will inform public once decision has been made. "

Mr. Giri has denied having said that this directive will apply to FPO of NIBL. However, he cautioned that this may be a reality if board decides to apply this directive on FPO of NIBL too which is yet to be decided.

There has been a lot of public out cry in the social media and other forums regarding this directive if it is really applicable to FPO of NIBL as being reported in few media outlet.

If this directive is applied to FPO of NIBL, then it may run in trouble with law as this directive was issued after the closure of the FPO. FPO of NIBL was issued from Falgun 11-14, 2072 while the directive came yesterday, Falgun 20,2072. It is a general rule that no laws(directive) can be implemented retrospectively. In most cases, the directives applied retrospectively fails to win court cases.

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