CIAA Raids Securities Board, Launches In-Depth Investigation into IPO Commission Scandal

After allegations that the Nepal Securities Board (SEBON) demanded commissions from hydropower promoters for IPO approvals, the Commission for the Investigation of Abuse of Authority (CIAA) raided SEBON's office on Wednesday. The CIAA team seized documents related to companies that had received or applied for IPO approval in the past five months. The Independent Power Producers' Association (IPPAN) accused SEBON of seeking 5–7% commissions through middlemen. However, SEBON Chairman Santosh Narayan Shrestha denied the allegations, calling them baseless. The issue was also raised in Parliament, with lawmakers demanding a thorough investigation. IPPAN claims over NPR 24 billion in public investment is stalled due to IPO delays, with 89 companies awaiting approval. CIAA stated that preliminary irregularities were found and further investigation is ongoing. This controversy has now raised serious concerns about transparency and credibility in Nepal’s capital market regulation.