Sebon warns listed companies against publicizing their offerings before getting approval

KATHMANDU: The Securities Board of Nepal (Sebon) has issued a warning to the general public not to invest in stocks that have not received regulatory approval.

The Sebon has issued the cautionary note in response to the recent request by Manakamana Daraudi Hydropower Company to buy its products. The country’s stock exchange market’s regulatory body declared the issuance of such stocks to be illegal in a public notice on Sunday. .

According to the notice published by the Sebon, “If any organization wants to sell its securities to more than 50 people at once, they should take approval of the authorities concerned before they call for public offerings.”

The regulatory body has also issued warnings to publicly traded companies not to use deceptive advertising or publishing practices.