The Securities Board of Nepal (SEBON) has suspended the issuance process of Ghorahi Cement Industry Limited’s (GCI) initial public offering (IPO) citing fake subscription.

SEBON said that it had received complaints from investors about fake subscription in the IPO. The board said that it had investigated the matter and found that there was indeed evidence of fake subscription.

As a result, SEBON has suspended the IPO issuance process until further notice. The board said that it will take necessary action against those involved in the fake subscription.

The IPO of GCI was open for subscription from June 15 to 19. The company had offered 6,911,670 units of shares to the general public at Rs 435 per share.

The IPO was oversubscribed by more than 200 times. However, SEBON’s decision to suspend the issuance process has raised concerns among investors.

Investors are worried that they may not be able to get the shares they applied for. They are also concerned about the possibility of losing their money.

SEBON has said that it will refund the money of investors who have applied for the IPO. However, it is not clear when the refund will be made.

The suspension of the IPO issuance process of GCI is a setback for the Nepali capital market. It has also raised questions about the credibility of the IPO process in Nepal.

SEBON has said that it will take necessary steps to ensure that such incidents do not happen in the future. However, it remains to be seen how effective these steps will be.

In the meantime, investors are advised to be cautious before investing in any IPO. They should do their due diligence and make sure that the company is credible.