Due to weak
regulator, the Nepal Bangladesh bank annual general meeting (AGM) is likely to
be deferred.
In a free
market economy, when the regulator is
weak, the common people will suffer. And what could be best example than
the latest decision of stock brokers, who have stopped trading of Nepal
Bangladesh Bank stocks punishing the general investors due to fight between the
two big investors.
The capital
market regulator Securities Board of Nepal (Sebon) and front line regulator
Nepal Stock Exchnage (Nepse) are, instead of penelising promoter of NB Group Laxmi
Bahadur Shrestha and Nirmal Pradhan and force them to settle the complications of
ownership transfer of Nepal Bangladesh Bank, likely to agree to defer the AGM of
the bank scheduled for March 11.
The stock
brokers have stopped trading the Nepal Bangladesh Bank and National Hydropower
stocks to pressurise the regulators in the 'illegal' way that has curbed the
fundamental rights of a general investor.
Securities
Board of Nepal has claimed that it has started probing the case, they have
failed to perform their duty as regulator.
Nirmal
Pradhan and his partner cashed in on 220,000 units of Nepal Bangladesh Bank
stocks that according to the NB Group did not belong to them but was kept as
collateral has resulted in the loss of millions to more than 1,000 investors, who
have bought those stocks unknowingly.
The investors bought the
stocks of Nepal Bangladesh bank as it has proposed 17.89 per cent cash dividend
apart from including 10 percent bonus shares that is yet to be approved by the
AGM and central bank.
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