Kathmandu- The Securities Board of Nepal (SEBON) has formed a committee to investigate alleged irregularities in the initial public offering (IPO) of Reliance Spinning Mills.
A meeting of the SEBON board held on Friday decided to constitute the investigation committee under the coordination of board member Binod Kumar Bhattarai. The committee includes board members Anand Raj Sharma Wagle and Pitambar Bhandari, and has been authorized to invite other individuals as required during the course of the investigation.
SEBON formed the committee following a directive from the Ministry of Finance, which instructed the regulator to probe the matter after receiving a complaint alleging irregularities in Reliance Spinning’s IPO process.
According to SEBON, the investigation will examine issues related to the issuance and distribution of the IPO. Reliance Spinning has already issued and distributed shares to Nepali citizens working abroad.
The company had priced its IPO at Rs 820.80 per share. Further details regarding the nature of the alleged irregularities have not yet been disclosed.
