Right share is an issue of securities to the existing shareholders with the right resting on the investor either to accept or reject the offer. The main objective of the study was to analyze the violating shareholder’s right through auction, Further Public offering (FPO) instead of the first Privilege or Preemptive right of the existing shareholders. Both primary and secondary data was collected and analyzed. The sample of the companies was selected from the latest three years offering right auction and FPO (Further Public Offering) according to the convenience sampling and purposive judgmental sampling. The Survey is conducted on Kathmandu valley with the duration of six months ranging from 5 th march to 10th december, 2019 with the view of 200 respondents is taken including the investors and experts through the judgmental convenience sampling techniques. The result depicted that regulators and other concerned government agencies violated the rules and regulation of the company and also influence the stock market through unwanted right auction and promoting the match fixing business. In the past three years, the right auction and FPO of the listed companies is rising rapidly which leads to become the challenging issue for the corporate governance.

Keywords : Right Share Issue, Right Auction, Policies and Directives, Further Public Offering, Shareholder's Preemptive Right