KATHMANDU, Oct 29: The Securities Board of Nepal (Sebon) has taken action against four merchant bankers and six brokerage firms for not submitting their annual financial reports of last fiscal year 2015/16.
Issuing a statement, the capital market regulator said that it has banned brokerage firms violating the requirement from doing securities trading for seven days.
Similarly, the Sebon has also prohibited four merchant bankers from doing new business or contract for next seven days as part of its action for non-compliance.
Premier Securities, Market Securities, Arun Securities, JF Securities, Sumeru Securities and Sundhara Securities are the brokerage firms which faced Sebon action.
Similarly, Citizens Investment Trust, Beed Investment Ltd, Vibor Capital Ltd and Siddhartha Capital Ltd will not be allowed to do new business for seven days, according to the statement.
"This (action) will help in the improvement of transparency, compliance and corporate governance as well as development of the capital market," reads the statement.
According to Securities Act 2063, securities businesspersons should submit their financial reports, balance sheet, profit loss account and cash flow statements of every fiscal year to the Sebon within three months of the fiscal year end. If they cannot submit report within three months, they can seek deadline extension from Sebon.
Out of 50 brokerage firms, 15 other firms have submitted their annual financial reports to the Sebon while 29 have sought deadline extension. Similarly, only nine out of 16 merchant bankers have submitted their report to the Sebon in time.