Thursday, July 14, 2016

Sebon to check illegal flow of money in share market

The capital market regulator is going to investigate 'suspicious big' investments in the share market without discouraging genuine investors.
Securities Board of Nepal (Sebon) has formed a committee today to conduct investigations into big investments in the share market on suspicion of illicit flow of money as the daily turnover in the market has been exceeding Rs 1 billion lately.
The committee formed under the convenership of the executive director of Supervision and Research Department of Sebon has directors of Legal Enforcement Division and Securities Businessperson Supervision Division, apart from representatives from Department of Money Laundering Investigation (DMLI), Central Investigation Bureau (CIB) of Nepal Police and experts in the field, according to Sebon director Niraj Giri.
The committee has been asked to submit its report within a month.
The capital market regulator has been monitoring 'big investors' in the Nepal Stock Exchange (Nepse) since a few months as the daily turnover has been regularly looking above Rs 1 billion.
“The committee can take further information of the big investors of the market from the brokerage firms,” said chairman of the board Rewat Bahadur Karki.
It has been reported that the committee will keep an eye on investors whose daily transactions are over Rs 5 million. After the enforcement of the Anti-Money Laundering Act in the country, the brokerage firms are also required to notify the capital market regulator regarding transactions of above Rs 1 million.
"Now, the committee can ask for further details of the investors from the brokerage firms and investigate them if the committee has suspicions on the investor’s source of income,” Giri said, adding that the board is going to conduct investigations to prevent the chances of money laundering through the capital market. "Primarily, it is illegal and also will ultimately distort the sound growth of the capital market."

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