NEPAL REGULATOR, STOCK EXCHANGE CEO UNDER INSIDER TRADING PROBE

Kathmandu, Aug. 2: The chairman of the Securities Board of Nepal and the chief executive officer of its stock exchange are under investigation for alleged insider trading, using unpublished price sensitive information, according to media reports on Monday.

Securities Board, Nepal (Sebon) chairman Bhisma Raj Dhungana and Nepal Stock Exchange chief Chandra Singh Saud are accused of buying shares for their family members of Sarbottam Cement at lower prices than what was to be listed at its initial public offering (IPO), the Nepali Times newspaper reported.

The alleged scandal came to light last week after the vernacular newspaper, Himal Khabar published its investigative report.

Taking cognisance of the news report, the finance ministry demanded an explanation from Dhungana and Saud. However, the clarifications seem to be inadequate and the government has now tasked the Commission for Investigation of Abuse of Authority (CIAA) to carry out its probe, the report said.

Confirming the developments to The Kathmandu Post, CIAA chief commissioner Prem Kumar Rai said relevant documents have been sought from the finance ministry.

The alleged irregularities are believed to have taken place when the board of Sarbottam Cement sought Sebon’s assistance in launching the company's IPO.

Sarbottam Cement has stated that its shares were to be priced at Rs 750 per unit at the IPO, even though it has been valued at Rs 100.

Dhungana and Saud are accused of buying the shares for their kin at around Rs 250 per share.