SEBON halts Ghorahi Cement’s IPO process due to ‘fake subscription’

KATHMANDU: The Securities Board of Nepal (Sebon) asked the relevant authorities to halt the release of the initial public offerings (IPOs) of Ghorahi Cement on Monday.

The sector’s regulator has halted the June 15-started public offering process because it believes there may be a case of “fake subscription” on IPOs.

The issue managers Himalayan Capital Limited and Nabil Investment Banking Limited have been instructed to halt the process temporarily, according to Mukti Nath Shrestha, executive director of the Sebon.

We have already requested that the banks in question put a freeze on the funds that the applicants used to buy the company’s initial public offerings, according to Shrestha. “When determining whether to keep the applicants’ bank accounts frozen, we will take the length of the investigation into account. ” .

More than 10 million applications for shares are thought to be fraudulent subscriptions, according to the regulator.

The market participants are alleged to have committed fraud in order to generate a large amount of interest in the company’s stock.

According to CDS and Clearing Limited, a division of Nepal Stock Exchange (Nepse), the majority of applications that are not supported by a bank account have been rejected.