In a historic turn of events, the Special Court Kathmandu has witnessed the registration of the first-ever case related to shares, with serious allegations of insider trading. The Money Laundering Investigation Department initiated proceedings against Guru Prasad Neupane, the former Chairman of Ridi Power Company, and Executive Director Kuberamani Nepal.
The case, registered under the Prevention of Money Laundering Act 064, accuses Neupane of engaging in insider trading during his tenure as the company's chairman. The investigation, spanning from Chaitra 19, 2077, to Shrawan 24, 2078, revealed Neupane's involvement in trading the company's shares in violation of Section 91 of the Securities Act 063.
The department's statement asserts that Kuberamani Nepal, in his capacity as Executive Director, played a facilitating role in the alleged insider trading. The charges further claim that Nepal knowingly received, assumed, and disposed of a substantial amount, totaling 1 crore 19 lakhs 10 thousand 252 rupees, in connection with the illicit activities. The department has demanded fines equivalent to the mentioned amount for Neupane and additional penalties under Section 30 of the Act, along with imprisonment commensurate with the severity of the crime.
Following the registration of the case, both Neupane and Nepal have been automatically suspended from their positions. According to Section 27 of the Prevention of Money Laundering Act 2064, any officer, employee, or public servant imprisoned under the Act is considered suspended for the entire duration of their imprisonment. This suspension remains in effect until the resolution of the case filed against them under Section 22.
This groundbreaking case signals a significant step in addressing financial misconduct within the stock market and underscores the commitment to maintaining the integrity of Nepal's financial systems. The Kathmandu Special Court is now poised to adjudicate this landmark case, setting a precedent for future legal actions against offenses in the stock market.