Energy Minister's Announcement Regarding IPO Quota for Security Personnel Sparks Controversy
Summary
Energy Minister Biraj Bhakta Shrestha’s plan to reserve 2 percent of hydropower IPO shares for security personnel deployed in the Bhote Koshi flood response has sparked legal and regulatory controversy. Experts and stakeholders say the proposal may conflict with existing securities rules, while the ministry says it will set criteria to implement the policy.
Key Points
- Energy Minister Biraj Bhakta Shrestha announced a plan to give 2 percent of hydropower project IPO shares to security personnel who took part in disaster rescue and relief work after the Bhote Koshi flood.
- The proposal has drawn criticism over its legality, with experts arguing that share quotas for security personnel could distort securities regulation and should be replaced by awards or other incentives.
- The Securities Board would need to amend the Securities Issuance and Allotment Sixth Amendment Directive, 2079, before the plan can be implemented.
- The Ministry of Energy says it is still in the policy-making stage and will create criteria to honor security personnel during disasters.
