Shares brought by non- resident during IPO for locals of Chilime Hydro to be confiscated

The shares of Chilime Hydropower that were issued for the locals, but brought by non-residents will be confiscated as per DevPrakash Gupta CEO of the CDS and clearing limited (CDSC). The non-residents hold about four thousand kittas of shares meant to be issued to the locals of affected . DevPrakash Gupta said, “After the compulsory demat share transaction was implemented, those shares have been cornered.” Fingerprints were used instead of signatures in the shares of Chilime hydropower and CDSC system doesnot recognize finger print so to demat the shares, the locals for now has to come to Kathmandu. The locking period of the shares issued for the locals by the chilime hydropower was till Magh, 2070. Before the introduction of compulsory demat there was a system where the local shareholder needed to certify the selling of their shares. CDSC plans to capture the shares hold by non- residents and return it back to the original shareholders or the locals of the project affected areas. CDSC will go to Rasuwa along with Depository Participant within a month’s time. If such management is done than the actual locals of the project affected area will be benefitted, also such practice won’t be seen in the future IPOs. As per a study, in a locking period of 3 years, the investment made by locals of Rs 8000 during an IPO, has reached a worth more than Rs 3 lakhs. Soure: Abhiyan Daily