Thursday, July 29, 2021

Finance Ministry seeks clarification from Sebon, Nepse over 'sweat share'

 Finance Ministry tofay asked the Securities Board of Nepal (Sebon) and Nepal Stock Exchange (Nepse) for clarification over their alleged alliance to acquire sweat shares of a company.

The chief of both the capital market regulator and frontline regulator have been alleged involved in the insider trading of Sarbottam Cement that is in the process if floating its share to the public through book building process.

The chairman of Sebon Bhisma Raj Dhungana has been accused of purchasing 11,992 units of primary shares of Sarbottam Cement in the name of his daughter, who is residing abroad, whereas the chief executive officer (CEO) of Nepse Chandra Saud has been accused of purchasing 10,000 units of primary share of Sarbottam Cement in the name of his wife.

Writting a letter to both the Sebon and Nepse today, the Finance Ministry has sought expalnation within three days.

Sarbottam Cement is waiting for Sebon's approval to float its 6 million units of primary shares to the public through book buildong process. However, both Dhungana and Saud have been accused of purchasing the shares before the company goes public.

The Sebon’s rule has barred its officials from receiving undue benefits by abuse of authority.

According to a press note issued by the Finance Ministry, it has sent clarification letters to Sebon and Nepse asking them to provide details on the issue within three days

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