Chairman of the Securities Board of Nepal (SEBON), Santosh Narayan Shrestha, has approved the Initial Public Offering (IPO) of Bungad Hydropower, a company in which he personally holds investments.

Shrestha, who owns 33,000 shares in Bungad Hydropower, granted approval for the issuance of 2,905,000 shares at a face value of Rs 100 each. The IPO is intended for both project-affected locals and the general public.

Family members of Shrestha also reportedly have investments in the company.

This development comes amid longstanding allegations against Shrestha of using middlemen to demand commissions for IPO approvals. For the past two months, energy producers have accused SEBON of withholding IPO approvals unless unofficial payments are made.

Himalayan Capital is the issue and sales manager for the IPO. SEBON granted approval on June 29 to issue shares worth Rs 290.5 million, equivalent to 35 percent of the company’s issued capital.