The government-run Nepal Securities Board has created confusion among the public by issuing public notices against US companies registered under US law.
The Securities and Exchange Board of Nepal has been studying the publicity about investment in Sagoon for some time now. The board has been paying serious attention to the news and advertisements in various newspapers and media outlets that a company like Sagoon Inc., which is registered abroad, has issued public issuance of securities to Nepali investors.
What is the issue?
Article 27910 of the Securities Act, 2063 stipulates that an organization must register with the Board before issuing securities in Nepal, and Article 29910 states that if an organization sells and distributes securities to more than 50 people at a time, it must be issued publicly for sale and distribution. It is mentioned that Sagoon is a company run by the Securities and Exchange Board of America. It has nothing to do with Nepal’s securities.
Similarly, the issuance of securities in Nepal without the approval of the Board would be illegal, and investing in such securities would not protect the interests of investors from the existing legal provisions.
Sagoon’s investors have questioned the ability of the board’s leadership after the Investment Board released information through newspapers without studying the issue of Sagoon’s establishment in Nepal.
In response, Sagoon has written a letter to the Securities and Exchange Board stating that it has no intention of raising investment from Nepal.
The Securities and Exchange Board of Nepal has thereafter issued a public notice stating that there is no truth in the statement that a company like Sagoon Inc., registered abroad, has made a public issue of securities targeting Nepali investors.
Sagoon is a social network run with the active participation and investment of Nepalis living abroad. Its popularity has been increasing since it started selling IPOs by setting up offices in other countries including India. At present, more than 50,000 users are connecting to Sagoon daily.
Sagoon is the first pioneer among the migrant Nepalis to establish a global brand. Sagoon wants to inspire new generations of Nepalis by drawing a new pathway. “We believe that our success can inspire the new generation of Nepalis to compete with the world through the latest thinking and work”, the company said.