Probe on fake share certificates ongoing

KATHMANDU:

Based on the preliminary findings of the investigation team, the Nepal Stock Exchange (Nepse) believes fake shares worth Rs 25 million were traded in the country’s only secondary market last week ‘due to recklessness of brokers’.

The incident came to light on Thursday after brokers reported the incident to Nepse after verifying the certificates with Registrar to Shares (RTS).Reportedly the police have already arrested the person holding fake share certificates from the respective broker’s office, when he had returned to collect his payment.

However, it is said the man — whose name has not been disclosed yet due to ongoing investigation — is not the mastermind

behind the scheme and the main culprit is yet to be identified.Nepse had suspended four brokerage firms that were involved in the trading of fake share certificates. Nepse, today, said that fake share certificates that were traded in Nepse were of two hydropower companies.

Nepse has formed an investigation team under the leadership of its Spokesperson Shambhu Panta, comprising its IT Manager Prakash Deuba and Assistant Manager Khom Bhatta. Another member is Mukti Shrestha, deputy director of Securities Board Nepal (SEBON). Investigation team is working in coordination with share brokers and police.

In addition, Nepse has also urged stock investors to fulfil all required processes while trading after the incident of fake share certificates was revealed. -

Source: THT