Kathmandu. The Securities Board of Nepal (SEBON) is preparing to extend the lockdown period for Private Equity Venture Capital (PEVC).

The PEVCs are preparing to invest in the IPO of listed companies and extend the period after the sale of shares after the end of the lock period. The board has tried to extend the period of PEVC companies after investors started investing only to take advantage of it.

Such funds have been brought to develop entrepreneurship in Nepal.

However, PEVCs have used cocoin as a weapon to earn money. Some of them have invested more in the hydropower sector. Since the company can be locked in 1 year after the IPO issuance, it is easier to sell the shares and choose PEVC.

If you invest in a listed company, then there is a 3-year lockout for the founder, project affected and employees. However, only PEVCs have a 1-year lock.

Board officials say that PEVCs have chosen more hydropower companies because they can sell shares after 1 year and make a profit in a short time.

“If an individual invests in a listed company, there is a lock-in period of 3 years,” said an official of the board. After that, the law does not stop the investment from leaving. ”

SEBAN has said that it is reducing the lockdown period to prevent such malpractices. PEVCs are said to sell shares at a time when prices are high and this will affect the investors. The board has also formed a study committee to discuss the issue at various times to reduce the EIN period. The committee has already submitted its report.

Joint Spokesperson of the Board, Tolakanta Neupane, said that a committee has been formed to study the issue. Immediately after the formation of the new government, work was done to increase the number of PEVCs. Santosh Narayan Shrestha, the outgoing chairman of the board, has resigned from his post after the formation of the government under the leadership of Rastriya Samajwadi Party (RSP).

The board is now without a chairman. Sebon is preparing to take this process forward with the arrival of a new chairman on the board. PEVC has been taken as an alternative medium of investment. PEVC is now accused of trying to take advantage of the lockdown period and bringing IPOs of companies with weak financial conditions.