Santosh Narayan Shrestha, Chairman of the Securities and Exchange Board of Nepal, said that a letter has been received from the Ministry of Finance to investigate Reliance's IPO issuance.
A complaint has been filed with the Ministry of Finance alleging irregularities in the initial public offering (IPO) of Reliance Spinning Mills.
The Ministry of Finance has directed the Securities and Exchange Board of Nepal (SEBON) to investigate the IPO of Reliance, which is scheduled to be issued to the public from December 20, and to take action as per the law if any irregularities are found.
The company issued the IPO through the book building method and a letter was sent to the Securities and Exchange Board of Nepal for further study after receiving complaints/complaints about irregularities in the pricing process, said Mahesh Acharya, Chief of the Financial Sector Management and Coordination Division of the Ministry of Finance.
‘The Securities and Exchange Board is the regulatory body of the capital market. It is also its job to decide how to allow pricing. Therefore, after receiving complaints about irregularities in the pricing process including Reliance, we have sent a letter to SEBON to investigate the matter and take necessary action and send the information to the ministry,’ he said. ‘If SEBON finds any objections during the investigation, nothing needs to be done.’
Santosh Narayan Shrestha, Chairman of the Securities and Exchange Board of Nepal, said that a letter has been sent from the Ministry of Finance to investigate the IPO of Reliance. He claimed that it was a regular process for such letters from the Ministry of Finance to be received based on complaints and that the board had already completed all the procedures and given permission for the IPO issuance.
