Board: Investors having promoters shares prohibited from applying FPO

Kathmandu February 25- Investors who have earlier acquired promoters share of Nepal Investment Bank has been prohibited from investing in 9 million 69 thousands 388  units of shares as FPO offered by the bank since last Tuesday.

Earlier, NEPSE freed promoter's share of BIFs allowing trading of listed promoters share. Thus, a doubtful scenario, whether investors who have acquire promoters share are allowed to invest in FPO or not was ruling the capital market since few days.

Amid the controversy, board hinted that promoter shareholders could invest in FPO which had given some relief to the interested investors. Though earlier, NRB had already clarified that such provision is not an option. Even though promoters shareholders were expecting to invest in FPO based on Board's decision.

But, it has been said that due to regulational pressure from NRB, board has revised its decision and now promoters' shareholders will not be allowed to invest in FPO. As Nepal investment bank is issuing FPO to convert its promoters and general share ownership from 80:20 to 70:30, promoters shareholders are barred from investing in FPO.