KATHMANDU, July 29: The Ministry of Finance (MoF) has asked the Securities Board of Nepal (Sebon) for clarification over the board’s officials’ alliance to acquire shares of a listed company.
A few days ago, a media outlet published news on Sebon Chairman Bhisma Raj Dhungana, accusing him of being involved in insider trading for vested interests. Dhungana has been accused of purchasing 11,992 units of general shares of Sarbottam Cement, a company that is in the process to issue primary shares to the public through book building process.
Sarbottam Cement is looking to receive the board’s approval to issue its 6 million units of primary shares to the public. However, Dhungana has been accused of purchasing the shares before the company goes public. He was found to have purchased the shares in the name of his daughter who is residing abroad. The Sebon’s rule has barred its officials from receiving undue benefits by abuse of authority.
According to a press statement issued by the MoF, it has sent a letter to Sebon on Wednesday. The ministry has asked the regulatory body to provide details on the issue within three days.