Binod Bhattarai's "Scramble for Indosuez" (#56) and his line "divesting in Nepal is almost as difficult as investing" are very pertinent. Nepal has to simplify political and bureaucratic procedures if it is serious about attracting foreign investment. The insurgency is already a big disincentive for foreign investors. The article also quotes me on the subject of minority shareholders' rights. May I clarify that in all past deals the interest of such shareholders have been totally ignored. The Stock Exchange Board, the Rastra Bank and other regulatory authorities must make it mandatory in the Indosuez deal for the new buyer to guarantee the minority shareholders to buy back their shares at the prevailing market price if they wish to sell.

Tirth Upadhyay

KPMG