MP accuses SEBON of demanding commission to approve hydropower IPOs
MP Sapkota claimed that SEBON has been bargaining for commissions — 5% from small-scale projects and up to 7% from larger ones — before granting IPO approvals.
KATHMANDU: CPN (Maoist Centre) lawmaker Madhav Sapkota has leveled serious allegations against the Securities Board of Nepal (SEBON), accusing it of demanding commissions in exchange for approving Initial Public Offerings (IPOs) related to hydropower projects.
Speaking during a session of the House of Representatives on Wednesday, MP Sapkota claimed that SEBON has been bargaining for commissions — 5% from small-scale projects and up to 7% from larger ones — before granting IPO approvals.
He stated that due to such unethical practices, IPO approvals for 89 companies involved in 43 hydropower projects, with a combined capacity of 1009.52 megawatts, have been stalled for the past 22 months. The total investment tied up in these pending approvals amounts to more than NPR 56.07 billion.
Highlighting a stark contradiction, Sapkota noted that while the government has set an ambitious target to produce 28,000 megawatts of electricity, SEBON’s alleged behavior is directly undermining that goal. He called the actions of the regulatory body “serious and deeply troubling.”
“This is a grave issue. I urge the government to take immediate and serious action,” Sapkota said. He also requested the Speaker of the House to issue a ruling directing the government to initiate an investigation into the matter.
