Clarification of the Audit Committee to the two Securities Boards and the Insurance Authority on Allowing IPOs at a Premium

Kathmandu : The Public Accounts Committee of the House of Representatives has asked for an explanation from the Nepal Insurance Authority and the Nepal Securities Board, which allowed the issue of IPO at a premium. An official confirmed late on Wednesday that the audit committee’s letter was registered in Sebon. Also, the letter of the accountant has also reached the insurance authority.

Based on the complaint given by the share investors regarding the permission to issue IPO at a premium, the Audit Committee has sought clarification from the two regulatory bodies. In addition, the news regarding the violation of the constitution by the Insurance Authority and Sebon by allowing the issue of IPO at a premium price in Bimapost was published yesterday.

Investors have been protesting that the Insurance Authority and the Securities Board have allowed 4 life insurance companies to bring premiums in violation of the provisions of the Insurance Act, 2079. Similarly, it has been clearly asked about the issue of IPO at a premium price to companies with weak net worth. Sonapur Cement and Ghorahi Cement were allowed by Nepal Securities Board to issue IPO at premium price.