SEBON, NIA and Himalayan Reinsurance sued for controversial IPO

KATHMANDU, NOVEMBER 24: A writ petition has been filed against the entities involved in the issuance of the controversial Initial Public Offering (IPO) of Himalaya Reinsurance. The entities targeted in the petition filed today at the Supreme Court (SC) include the Security Board of Nepal (SEBON), the Nepal Insurance Authority (NIA), and the company itself.

Himalaya Reinsurance issued 3 million units of shares, targeting Nepali citizens working abroad, on the last Monday. The petitioner, lawyer Yam Prasad Bhattarai, argues that the act of issuance, which added Rs 106 as a premium to each unit of share worth Rs 100, was illicit. The court hearing for the petition is scheduled for Sunday, November 26.

There were previous reports indicating corruption of over Rs 1 billion during the issuance of an operating license to Himalaya Reinsurance.