Investors led by Tilak Koirala are going to court against the Securities Board of Nepal (SEBON) and the Insurance Regulatory Authority, claiming that the Board and the Authority have allowed insurance companies to issue initial public offerings (IPOs) along with the premium amount, contrary to the law. Tilak Koirala, the investor, stated that the decision to issue IPOs with premiums against the Insurance Act has led investors to court.
Tilak Koirala, the investor, has alleged that "the decision to issue IPOs with premiums against the prevailing law is a blatant act of corruption". He has stated "that they will take the matter to court against Ramesh Hamal, the Securities Board of Nepal (SEBON) Chairman, and the Insurance Regulatory Authority for this decision".
The investors have pointed out that Section 45(5) of the Insurance Act 2079 is a base going to court.