In between the company and SEBON exchanged correspondence many times. Despite of following all the procedures, Mailung could not obtain approval. Last time in 2076, Jestha, the board asked the company to bring pre-approval from the Electricity Authority, since then, it has not contacted the board.
Companies that were thinking of issuing primary shares are becoming discouraged due to the long procedure involved in obtaining approval from SEBON. Currently, 14 companies have applied for SEBON approval to issue primary shares. The companies are planning to issue 38,473,746 units of shares worth Rs 3.85 billion.
However, these companies may back down their plans considering the lengthy and irrational procedure involved to get the approval.
Meanwhile, SEBON opposed the claim that it delayed approval for primary share issuance. The board said that depending upon the nature of the application and documents submitted, it may take one week to three years period to obtain the approval. Recently, due to COVID-19, the process has delayed to some extent, even though few companies have issued primary shares in such conditions too, said SEBON.
However, as per the companies, the procedure is quite lengthy and irksome. Due to the length of time the board takes, they need to change a single paper many times which is very trying and time-consuming. Because of which companies which were preparing to issue primary shares to the general public have postponed the idea of issuing primary shares.
