Banking News – The House of Representatives’ Finance Committee has directed the government to ensure that residents directly affected by hydropower projects receive 10% of project shares at the face value of Rs. 100, in accordance with existing securities regulations.

The committee issued the directive after receiving complaints and formal petitions alleging that project-affected local communities were being deprived of their legal entitlement to shares reserved for them under the law.

According to Rule 9(4) of the Securities Registration and Issuance Regulations, 2017 (2073 BS), organized institutions are allowed to allocate up to 10% of their issued capital to residents of areas directly affected by development projects, including hydropower schemes.

Stating that the rights of local residents had not been properly protected, the parliamentary committee instructed the government to immediately enforce the existing legal provision.

The committee specifically directed the Ministry of Finance, the Ministry of Energy, Water Resources and Irrigation, and the Nepal Securities Board (SEBON) to ensure that 10% of shares reserved for project-affected local communities are issued at the face value of Rs. 100 per share, as stipulated in the regulations.

With this parliamentary directive, hydropower companies are expected to face increased legal and regulatory pressure to issue reserved shares to eligible local residents at their original face value rather than at premium prices, ensuring that affected communities receive the benefits guaranteed under existing laws.