Nepse urges action against two brokers over fake certificate scam

KATHMANDU, April 6:

Nepse has forwarded a letter to Securities Board of Nepal (SEBON) urging it to take action against two broker companies for their alleged involvement in the fake certificate scandal that came to light recently.

A report submitted by a probe committee formed to look into the fake certificate scam had found Agrawal Securities (broker 6) and Shrihari Securities (broker 56) guilty of involving in the scam.

The fake certificate scandal came to light after a promoter of G & G Investment Company was arrested last month. The promoters of the company had traded 13,500 unit shares of Chilime Hydropower Company between one another. They had also taken out loans by pledging those shares as collateral. The promoters of G & G Investment had taken out a loan of Rs 64,20,000 from Siddhartha Development Bank and another loan of Rs 59,27,000 from United Finance by pledging the fake shares of Chilime Hydropower.

The shares were sold under the names of Shristi Kafle, Sona Dahal, Ramhari Acharya and bought in the name of Govinda Ghimire.

The bank and finance companies had agreed to provide the loans after Agrawal Securities pledged to stand as a guarantor. Later, Agrawal securities itself paid back the loan amount to the issuing companies.


Translated from Abhiyan National Daily