Finance Committee directs govt to take action against Sebon and Nepse officials
August 20, 2021 07:44 PM NPT
KATHMANDU, August 20: The Finance Committee under the House of Representatives has directed the government to carry out an investigation immediately into the alleged involvement of some office-bearers of the Securities Board of Nepal (Sebon) and Nepal Stock Exchange (Nepse) in the share market and take action against them.
After garnering information with Finance Minister Janardan Sharma and Finance Secretary Madhu Marasini on the matter, the parliamentary committee directed the Ministry to take action regarding the case and furnish details on it. The committee suggested promotion of transparency, morale, good conduct, responsibility and accountability by maintaining sustainable development and stability in the share market.
The ministry has also been asked to prepare a draft of reform at the policy, legal, structural, managerial, technical levels for the improvement of share market. Earlier in the meeting, Finance Minister Sharma said that the attention of the Ministry was drawn toward the matter and a committee was also formed to carry out an investigation into the case.
"The ministry’s attention has been seriously drawn toward the share transaction of Sarbottam Cement," he said, stating that the investigation was for addressing the issue and ensuring the security of people's investment. According to him, the committee was formed to deal with the matter seriously and it would recommend a legal action if any ill-intention was found.
The share market has attracted investors with the closure of other alternative areas for investment due to the COVID-19 pandemic. Prior to this, the committee’s President Krishna Prasad Dahal sought the need of making the capital market healthy, fair and transparent so that security of small investors could be guaranteed. The government should remain alert to the possibility of irregularities in the capital market.
Committee members were of the view that the connection of Sebon and Nepse officials in share transactions was a moral issue. Former finance minister Surendra Prasad Pandey said the stock market was yet to be considered as the people's property and it was yet to win the public trust. He said transparency in the share market was needed while lawmaker Ram Kumari Jhankri was of the opinion that involvement of officials of Sebon and Nepse in share transactions must be investigated.