KATHMANDU, May 19: The Securities Board of Nepal (SEBON) has asked the Independent Power Producers’ Association of Nepal (IPPAN) to clarify allegations that Chairman Santosh Narayan Shrestha demanded commissions through intermediaries in exchange for approving IPO issuances.
In a formal letter sent to IPPAN, SEBON instructed the association to provide factual evidence, if available, and to issue an official statement outlining its position. The letter adopts a warning tone, cautioning IPPAN against making unverified public accusations that could damage the capital market's integrity.
Finance ministry seeks clarification from Sebon over suspected...
The controversy emerged after opposition lawmakers raised the issue in Parliament on May 7, calling for an investigation into Shrestha’s alleged misconduct. Lawmakers Madhav Sapkota (CPN Maoist Centre) and Roshan Karki (Rastriya Prajatantra Party) demanded swift government action, stating that such practices discourage investment in the energy sector—especially when the government aims to produce 28,000 megawatts of electricity in the next decade.
On May 6, IPPAN held a meeting in Kathmandu and decided to formally draw Chairman Shrestha’s attention to complaints about commission demands during IPO approval processes. The association warned that if SEBON continued delaying approvals, it would launch pressure-oriented programs to push for action.
Currently, 89 companies are awaiting IPO approval from SEBON, including 43 hydropower firms with proposed offerings worth NPR 19.44 billion. Promoters say delays have already cost them NPR 4.96 billion in interest payments. Since Shrestha assumed office, SEBON has approved IPOs for only seven companies in five and a half months.
The controversy has already triggered a raid by the Commission for the Investigation of Abuse of Authority (CIAA) at SEBON’s office.
