Nepal’s IPO Gridlock: When Regulation Fails, Investors Pay the Price
Summary
Nepal's IPO system is stalled due to regulatory failures at SEBON, delaying capital raises of Rs 66.23 billion across 98 companies, severely impacting hydropower projects and local communities entitled to shares.
Key Points
- Nepal’s IPO approval process by SEBON has been severely delayed, affecting 98 companies collectively seeking Rs 66.23 billion from investors.
- Hydropower projects are particularly impacted because IPO funds are essential to unlocking bank loans, causing construction delays and financial losses.
- The enforcement of an unofficial Rs 90 net worth per share rule by parliamentary committees has created contradictory directives, exacerbating the approval paralysis.
- Corruption allegations and a growing unregulated pre-IPO market have emerged amid the regulatory vacuum, harming investor trust and market integrity.
