Kathmandu. Khumnath Pyakurel, treasurer of the Nepal Shareholders’ Association, has demanded the government to introduce criteria for the issue of ordinary shares (IPO), right shares and promoter shareholders.

He made the demand while discussing the issue of share market in the meeting of the Finance Committee today.

During the discussion of the committee, he demanded that the Securities Board of India should not allow the listed company to issue the right shares on the basis of an application. Now it is alleged that Sebon is allowing the right issue to be issued on the basis of the application.

In the discussion, he demanded that the company should be allowed to bring the right shares, the company should be 3 years old and the profit should be distributed for 2 years. He said that it was wrong to allow the company to bring the right shares and to allow the company that has not given dividend to bring the right shares.

For this, Pyakurel demanded that the rights regulations be amended. He also demanded that the shares of the directors in the company should be at least 1 percent. He said that if this happens, the directors in the company will have ownership over the company.

He said that after the companies brought shares, the 3-year lock opens and when the locks are opened, it is like leaving the stock.

He demanded that the regulations brought by the Securities Board of India be amended from time to time. He said that banks, financial institutions and insurance companies have to decide how many shares to buy and companies that do not have a direct regulatory body have taken shares arbitrarily.

He said that while buying the shares of the bank financial institution, the promoter should take the shares, but after opening another company, the number of selling the shares has increased. He claimed that this has led to good governance of the company. He claimed that only 10 percent of the hydropower companies are honest.

He claims that the trend of opening companies, issuing shares and selling them has increased. He claims that Sebon has not paid attention to this. He said that it is not clear what will happen to the promoter shares and public shares. He claims that when the hydropower company issues shares, 60 percent of the shares will be brought in and 60 percent of the shares will belong to the promoter, and then after the lockout is opened, all the shares should not be sold at once.

He suggested that the person who brought the IPO should have been a director of the company for 5 years, have an audit report for 4 years, and have made a profit. He claimed that it was wrong to allow more than 400 shares to repay a loan of Rs 1 billion.