KATHMANDU, Oct 14: High-ranking officials of the Securities Board of Nepal (Sebon) and Nepal Insurance Authority (NIA) have been alleged of being involved in taking undue benefits to favor insurance companies while allowing them permits for issuing initial public offerings (IPOs) at premium prices.
Investors have filed complaints at the Commission for the Investigation of Abuse of Authority (CIAA) against Sebon Chairman Ramesh Kumar Hamal and Executive Director Mukti Nath Shrestha. Likewise, the NIA Chairman Surya Prasad Silwal and Executive Director Raju Raman Paudel have also been blamed for being involved in the scam.
24 companies preparing to issue IPOs worth Rs 6.5 billion
According to the CIAA source, the officials have been accused of receiving commissions while permitting the insurers to float IPOs at premium prices. The complaints filed at the anti-graft body stated that these four officials of the regulatory bodies misused their authorities in favor of Citizens Life Insurance, Sun Life Insurance Nepal, IME Life Insurance Company and Reliable Nepal Life Insurance Company.
Likewise, the officials of Sebon and NIA have also been accused of stepping forward to permit Himalayan Reinsurance Limited to issue the company’s IPOs in a similar manner. The investors have sought the CIAA’s intervention to halt the issuance process of the reinsurer.
