Concluding that the officials of Nepal Securities Board (Sebon) and Nepal Stock Exchange (Nepse) misused their posts and took unfair advantage, the Finance Committee -- under the Federal Parliament -- today directed the government to investigate into their alleged involvement in the 'golden share' case of Sarbottam Cement, and take action against them.
The parliamentary committee also directed the ministry to take action regarding the case and furnish details.
Asking the ministry to prepare a draft of share market policy, legal, structural, managerial, and technical aspects reform, the committee also suggested promotion of transparency, morale, good conduct, responsibility and accountability in the share market.
Answering the parliamentarians questions, finance minister Janardan Sharma informed them of formation of committee to investigate into the case. "The ministry’s attention has been seriously drawn in the transaction of shares of Sarbottam Cement," he said, adding that the committee will recommend legal action, if any ill-intention was found.
The share market has become an alternative to the investors as economic activities have been halted due to Covid-19. The share market has attracted around 3.5 million investors as an alternative investment avenue.
The committee’s chair Krishna Prasad Dahal also asked the ministry to ensure the healthy, fair and transparent transactions in the share market. "The government should remain alert to the possibility of irregularities in the share market," he added.
The parliamentarians were of the view that the connection of Sebon and Nepse officials in share transactions is a moral issue, though the law has not barred the relatives of the officials to trade in the share market.
On the occasion, former finance minister Surendra Prasad Pandey said that the share market is yet to gain public trust. Likewise, lawmaker Ram Kumari Jhankri insisted on investigation of alleged involvement of higher officials of Sebon and Nepse in share trading.
Sebon is the regulatory body of the share market and Nepse is the frontline regulator. But the chair of Sebon Bhishma Dhungana was reportedly found involved in influencing the share market as his daughter purchased 10,000 units of Sarbottam Cement's share, whereas Nepse chief executive officer Chandra Singh Saud had also bought shares of Sarbottam Cement in the name of his wife. The Sarbottam Cement is issuing the public share through book-building.
The finance ministry had sought clarification from the Sebon and Nepse on July 28. The Financial Sector Management and Corporation Coordination Division of the finance ministry had asked Dhungana and Saud to send their clarification within three days. They have also submitted the clarification within three days.
No comments:
Post a Comment