Government Inaction on Pre-IPO Share Scam Criticized
Summary
The Nepalese government faces criticism for ignoring widespread pre-IPO share scams where illegitimate share sales at premium prices defraud the public, aided by collusion within the Securities Board.
Key Points
- The government under Balendra Shah has been criticized for inaction on large-scale pre-IPO share scams harming public investors.
- Trillions of rupees are being fraudulently extracted via promoter shares sold at premium under false IPO promises despite poor company fundamentals.
- Officials within the Securities Board of Nepal are allegedly colluding by accepting bribes to facilitate companies into the IPO pipeline.
- Current laws provide for share issuance at premium under conditions, but loopholes and regulatory silence enable misuse and public exploitation.
