The Finance Committee of the Federal Parliament has instructed the Securities Board to allow initial public offering (IPO) to companies with a net worth per share of less than 90. The Finance Committee has instructed the Board that it cannot be banned if the conditions mentioned in the current law are fulfilled.

The Public Accounts Committee had earlier instructed not to allow companies with a net worth of less than 90%. Net worth per share is calculated by dividing the profit left by the total liabilities of the company by deducting the income. 

Public companies seeking permission from the board for IPO issue should not be stopped based on conditions not mentioned in the law including net worth, if the conditions mentioned in the current law are met, said the directive of the Finance Committee. Ippan had repeatedly complained that the Securities and Exchange Board had barred companies with a net worth of less than 90 per share from IPOs. 

The Finance Committee of the Parliament asked the Securities Board whether there is a legal arrangement for the minimum net worth to issue an IPO. The board responded by saying that the current law and regulations on securities regarding the approval of the initial public issue do not specify the minimum limit of the net worth of the company and do not include the definition of the actual net worth. 

In a letter written by the Finance Committee on May 19, instructions have been issued to send the list of companies that have fulfilled the conditions mentioned in the prevailing law but have not been given IPO permission based on net worth to the committee within three days and to start the permission process of such companies immediately.

On January 12, 2080, the Public Accounts Committee wrote to the board and instructed to allow IPO only to companies with a net worth of more than 90. In view of the same directive, the board has not given IPO permission to companies with a net worth of less than 90. 

On the other hand, the Securities Board has said that the Finance Committee has received instructions and there has been no decision in this regard until Wednesday. "Instructions have been received not to stop IPO permission based on net worth only," said Niranjay Ghimire, spokesperson of the board, "What to do next is in the decision making process." It is not the responsibility of the Public Accounts Committee but of the Finance Committee. This company cannot be given IPO permission,'' he said.

He said that before giving the instructions to open the IPO, he asked the board to provide information on which law provides for the net worth. In response, he said that there is no provision in any law to stop IPO permission due to net worth. Why stop a matter that is not in the law? That's why I said to give permission to the company whose investment is secured by bank guarantee," Chalise said.  Chalise said that since

is the jurisdiction of the Arth Committee, its decision is valid. No one has the power to reverse it. The decision was made with the advice of the current finance minister, four-five former finance ministers,' he said, 'I have not gone outside the scope of the finance committee, I will not allow others to enter either.' 

Public Accounts Committee Chairman Rishikesh Pokharel stated that although he could not see the decision of the Finance Committee until Wednesday, the decision of one committee cannot be overturned by another committee.

"Parliament has various committees, the responsibility of following the decisions made by a parliamentary committee is not only for all committees but also for the entire parliament," he said, "We have given instructions according to the rules of the parliament." Now within the jurisdiction or not? Pokharel claims that there is a clear provision in the rules of the parliament regarding the scope of work and based on that, the committee has issued instructions to the board in the past.