Complaint to the Finance Committee against the directions of the Accounts Committee

Santosh Chalise, chairman of the committee informed that a complaint has been filed with the Finance Committee against the instructions of the Accounts Committee.

'A complaint has been lodged with the Finance Committee regarding the fact that the Accounts Committee has instructed the Securities Board on 12 January 2080 to prohibit the issuance of IPOs to companies with a net worth of less than Rs 90 and this has caused great disappointment to the capital market and investors. It seems necessary to discuss this matter as the securities board falls under the jurisdiction of the finance committee, said the chairman of the committee, Chalise, in today's meeting.

Recently, most of the companies have been issuing IPOs at a 'premium' price. It is mentioned in the instructions of the Audit Committee that the board's discretionary authority was used while allowing the IPO to be issued at a premium, and that the 'book building' process, which is determined by the competition of investors in the market, is an international practice.

'After the Securities Board revised the rules and made it possible to increase the price and calculate the net worth for the purpose of issuing the IPO by revising the company's rules, it seems that the company that is going into 'liquidation' has also started to issue the IPO by increasing the valuation on its own.'' Instructs the Nepal Securities Board to adopt the book building process where the price will be determined through competition and to allow the IPO to be issued only to companies with a net worth of more than Rs 90 without revaluation.' Otherwise, the accounting committee says that the companies that have gone into losses will reassess and sell their shares by increasing the price and ordinary investors will be at high risk so that such a situation will not be allowed to happen.

In the complaint lodged with the Finance Committee against the instructions of the Accounts Committee, it is mentioned that if a company that does not maintain a net worth of Rs 90 per share is banned from issuing IPO, it will lead to capital flight, large investors will not be able to invest and it will also affect the overall national economy . Similarly, the complainant has demanded instructions through the committee for the implementation of the previous decision to remove the provision of the 'lock-in' period for 50 percent of the 'promoter' shares for the reconstruction of the flood-affected hydropower project.

Likewise, today's meeting of the Finance Committee discussed the amendment proposal on the 'Banking Offenses and Punishment Act, 2064 Bill, 2080'. 20 amendments were proposed on the bill.