The Commission for Investigation of Abuse of Authority (CIAA) on Wednesday raided the office of the Securities Board of Nepal (SEBON) and seized files of 89 hydropower companies currently undergoing the initial public offering (IPO) approval process, following allegations of board officials demanding commission for the approval.

According to SEBON sources, CIAA officials arrived at the board’s premises on Wednesday afternoon and confiscated all IPO-related files under review. The move follows media reports and public accusations suggesting SEBON officials demanded commissions ranging from 5 to 7 percent from company promoters in exchange for clearing IPO approvals.

The issue was raised in Parliament earlier this week, with promoters claiming their applications had been stalled for up to 22 months unless informal payments were made. Independent Power Producers’ Association of Nepal (IPPAN) Chairman Ganesh Karki had earlier alleged that the board was previously asking for 3 percent, which was recently increased.

After the seizure, CIAA has initiated a formal investigation into possible abuse of authority and financial misconduct.

This development has raised fresh concerns about regulatory integrity in Nepal’s capital market and the transparency of IPO issuance processes.