KATHMANDU, May 20: The Securities Board of Nepal (SEBON) has suspended the trading of shares belonging to the National Hydro Power Company (NHPC) from Wednesday, after charging the company with irregularities in the distributing of its rights shares.
"We have instructed the Nepal Stock Exchange to suspend the transactions of NHPC´s shares following the complaints of irregularities in distributing rights shares that remained unsold," said Surbir Paudel, chairman of SEBON.
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Paudel said a team led by Lal Mani Joshi, joint secretary of the Ministry of Finance (MoF), has initiated the investigation of alleged irregularities. The company´s rights shares amounting to Rs 230 million had remained unsold.
"We will complete the probe within a month," said a member of the investigating panel.
The company has been charged with distributing the unsold rights share to its existing share holders.
JN Shrestha, the managing director of the company, however, claimed that the rights shares were distributed to existing share holders in line with the existing legal provisions.
