KATHMANDU, Sept 26: A government task force has suggested bringing pre-IPO fundraising under a legal framework to protect investors and stabilize the market.
The panel, formed by Finance Minister Rameshore Khanal to propose measures for boosting investor confidence, noted that companies have been raising funds at a premium through social media platforms before officially issuing IPOs. It urged the government to introduce provisions to regulate such practices.
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According to the task force, the unchecked pre-IPO trend has already had a negative impact on both the economy and the stock market.
In light of this, the task force submitted its report to Minister Khanal on Thursday, recommending strict oversight and regulatory measures to control such activities.
