Kathmandu. Following the directive of the Ministry of Finance, the Securities Board of Nepal (SEBON) has formed a committee to investigate the IPO process of Reliance Spinning Mills.
The Securities Board of Nepal (SEBON) has formed a three-member committee under the coordination of Board Member of the Ministry of Law, Justice and Parliamentary Affairs Binod Kumar Bhattarai to investigate into the activities related to the ouster of Reliance Spinning Mills from the book building process on December 18. The other members of the committee are Ananda Raj Sharma Wagle and Pitambar Bhandari. Wagle is the vice-president of ICAN while Bhandari is an expert member of the board.
The committee has been empowered to invite other persons as per the need. The committee has been mandated to submit its report within 15 days.
The Securities Board of Nepal (SEBON) has come under pressure after the Ministry of Finance sent a letter to the Ministry of Finance to investigate the issue of IPO to Reliance Spinning Mills despite poor financial condition. The Financial Sector Management and Coordination Division of the Ministry of Finance had sent a letter to the Securities Board of Nepal (SEBON) via e-mail as per the secretary-level decision of December 29. The letter has directed to take necessary action and inform the Ministry about the complaints and news received from Reliance Spinning’s book building method regarding IPO approval.
The Securities Board of India (SEBON) has been accused of granting IPO approval to Reliance Spinning on the basis of financial statements from two years ago. The company has already issued an IPO to Nepalis working abroad and is going to open the IPO to the general public from December 21. The general public will have to pay Rs 820.80 per share.
