Sebon bars Pragyan for insider trading

- Post Report, Kathmandu

May 22, 2017-

The Securities Board of Nepal (Sebon), the securities market regulator, has barred Pragyan Securities from stock trading, effective Monday after the brokerage was found leaking confidential information to its clients. 

According to the Sebon, the Biratnagar-based branch of the brokerage firm was found guilty of providing confidential information on issuance of rights shares of Civil Bank to investors. 

“The regulator took action as the company had shared information that was yet to be made public by the listed company,” said Sebon Spokesperson Niraj Giri, adding, “The brokerage firm is also suspected of insider trading.”

 Pragyan Securities, which also runs its business from Kamaladi, Kathmandu, has also been charged of making a ‘Viber Group’ comprising its clients to share confidential information related to the stock market. Sebon regulation bars stockbrokers from such malpractice that could result in insider trading. 

Giri said the Sebon has launched an investigation into the company’s activities. “If the company is found guilty, the regulator can take actions that could involve cash penalty, suspension of business or even scrapping of their operating licence,” Giri said.

Published: 22-05-2017 08:27

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