NMB on thin ice over lost IPO forms
KATHMANDU: Investors of Sunrise Bank are smelling a rat in the share allotment process handling by issue manager NMB Bank Ltd after discovering that chanawallahs and chat sellers have been using submitted applications as paper cones for their eatables four days after the Initial Public Offering (IPO) closed. Sunrise Bank’s 37,50,000 unit shares worth Rs 375 million were floated from May 3 to 6 through NMB Bank.
The Nepali vernacular eveninger, Naya Patrika, has carried a report news today on Sun Rise Bank share
applications being found in debris. Earlier also, the bank was in the media glare for alleged irregularity in share allotment of Clean Energy Development bank.
“It is negligence on part of NMB Bank,” said Santosh Pant, an investor, “It should make the situation public.” Worried investors were seen pacing up and down on the premises of NMB Bank at Babarmahal the whole day. A large number of investors visited NMB Bank offices to be clear in the matter. NMB Bank organized a press conference to clarify the issue.
“It was a human error,”
said Upendra Poudyal, Chief Executive Officer (CEO) of NMB Bank. “We are investigating whether it was intentional or unwitting,” he said.
According to Poudyal, 47 applications got lost from
the bank. However, an
inside source scoffed at his claim saying, “At least 160 application forms were lost.”
CEO Poudyal assured investors that the lost applications were listed in data bank and that all these would be included in shares allocation. “We have soft copies, only the hard copies have been lost,” he clarified. “We apologise to the investors,” he said.
Securities Board of Nepal (Sebon) and Nepal Ratra Bank have visited NMB Bank and are investigating the issue. “We are investigating the case,” said Sebon director Neeraj Giri. A Sebon probe team visited NMB Ban’s central office this morning.
Still, the investors are not assured. “We want details of the lost applications,” said investor Shiva Silwal, “I am afraid one of those forms is mine.” He urged NMB Bank to publish the list of lost applications.