Ghorahi Cement IPO | Getting out of the Ghorahi IPO quagmire, regular investors: underwriters, directors, and rating company rogues

Getting out of the Ghorahi IPO quagmire, regular investors: underwriters, directors, and rating company rogues 

The Ghorahi Cement director, the underwriter, and the rating agency conspired to demonstrate the high level of investor interest in the company's stock.

Innocent investors have been easily protected from the enormous losses they had to face as a result of the breakdown of the partnership between the three companies that sought to demonstrate artificial attractiveness to the company by submitting false applications.

After understanding the strong relationships between the underwriters, directors, and rating organization (CARE Nepal) in Ghorahi's IPO, the Nepal Securities Board immediately took steps to protect the investors.

The investors of Ghorahi Cement, Vishal Group, and Sanghai Group, also own Care Nepal.

High prices are also set by state-owned Citizens Investment Funds as a result of them.

Additionally, it owns Ghorahi Cement and the rating agency.

The rating agency immediately granted the investor Bhramit an outstanding rating after that.

By setting unaffordable pricing, the Citizens Investment Fund compelled the IPO to be filled at a premium.

Ghorahi Cement was involved in controversy right away.

The unstable financial situation was covered up by the rating firm's excellent rating.

The securities board's preliminary investigation revealed that the proprietor of Ghorahi faked an application to demonstrate that he had subscribed more than the demand.

The preliminary inquiry has revealed that the underwriter, rating agency, and Ghorahi are all attempting to deceive investors.

On June 30, a letter was written to Care Rating Nepal requesting an answer as to whether or not the issuer rating given to Ghorahi Cement by the Securities Board is unlawful.

CARE Nepal, however, waited until June 4 to offer an answer.

In contrast, the board was instructed to wait an additional 4 days.

Providing an explanation wouldn't have been a problem for Care Nepal if it hadn't been for its own complicity.

However, CARE is requesting an additional four days if the IPO of Ghorahi is fully subscribed.

Because Care Rating prolonged the date without providing any justification and without giving an explanation, the eviction procedure has been delayed for the benefit of the investors, according to Care Rating.

Even though there were more applications than there was demand, the corporation extended the deadline.

Additionally, CDS and Clearing alerted the Securities Board to a false application in Ghorahi's initial public offering (IPO).

Beginning on June 32, the corporation issued 69 lakh 11 thousand 670 shares to the general market.

It was observed that it was not natural to reject more than 10 million shares while issuing 69 lakh shares.

By 2:35 PM, 544,247 applicants had submitted applications for 23,322,350 shares, according to CDS.

1 crore of these shares have been turned down.

For Rs. 435 per share, the business has issued shares.

According to the Securities Act, fraud cannot be performed in securities transactions.

According to Section 98 of the Act, soliciting or hiring a third party to buy, sell, or exchange stocks with another person constitutes fraud.

Similarly to this, Section 99 of the Act states that trading in securities shall not be done dishonestly or dishonestly.

Section 101 of the Act, subsection 3, states that if it is determined that yasho was committed, a fine of one lakh to three lakh rupees or up to two years in prison may be imposed.

Alternately, the legislation offers both a fine and imprisonment.

The Securities Act stipulates that any loss or harm a person may have incurred as a result of such a transaction must likewise be compensated.

Action will be taken, according to CDS and Clearing Limited, if a stock investor purchases primary shares (IPO) for a sum greater than what is in his bank account.

After delaying the IPO of Ghorahi Cement, the Securities and Exchange Board has stated that it will investigate three key problems.

The research will be focused on share underwriters, ratings by rating agencies, and fraudulent share applications.

The sum of the applicants may be withheld for a few days due to the suspension of the first public offering (IPO) issued by Ghorahi Cement.

However, the amount concealed by the investors may come to light if it takes a while to investigate the details of this IPO.

धितोपत्र बोर्डले रोक्यो घोराही सिमेन्टको आइपिओ  

https://www.capitalnepal.com/detail/39020

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https://www.capitalnepal.com/detail/39029

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