SEBON Directs Reliable Devt Bank to issue Right Shares

October 18: Securities Board of Nepal (SEBON) has directed Reliable Development bank to issue right shares as per the decision of its 10th annual general meeting taken on October 3, 2016. SEBON, issuing a notice, directed Reliable to implement its right share issuance decision before going into acquisition process with Global IME Bank. 

Earlier, the 10th annual general meeting of Reliable Development bank had decided to issue 1:1 right shares to its existing shareholders. However, the bank has signed a memorandum of understanding (MoU) with Global IME Bank to be acquired without issuing right shares to its existing shareholders. SEBON, being a regulator of the market, has taken a keen interest on the subject matter and has directed the Reliable Devt to issue right shares prior to the acquisition.

According to the SEBON, the decision taken by the AGM on issuance of right shares was price sensitive. Thus, failure to implement the decision will be against the investors' interest.