A disputed financial report and questionable market activity prompt NEPSE to suspend Khani Khola Hydropower (KKHC).
Khani Khola Hydropower (KKHC) has been suspended from trading by the NEPSE. Stock tickers for the company are no longer listed on TMS, and the share price has not been updated at NEPSE today.
Murari Parajuli, NEPSE’s spokesperson, was away from the office when this matter was brought to his attention. Sharesansar’s representative was unable to reach an official of the exchange through its official contact. However, many suspected that Khani Khola Hydropower’s Q4 report was the reason for the exchange’s move.
NEA compensation claims were adjusted in company income. The company claimed NEA failed to establish a transmission line connection for the project. Even though KKHC had already begun producing electricity, it was unable to sell it.
The transmission line had not been connected by NEA. NEA has granted such claims, but it is not clear whether they will be compensated to the full amount, or even if they will be compensated.
After the company’s questionable Q4 report, its stock price rocketed. Immediately after the move, however, the shares were dumped in mass quantities. There are some investors who suspect that the dumping was orchestrated by company promoters through a predetermined plan.
In addition, neither SEBON nor NEPSE provided an official explanation on the matter. In addition, NEPSE’s website no longer displays the notice of suspension, which was posted this morning.