Himalayan Distillery Limited's former board member fined for financial misdoing; Associated broker fined for lack of accountability

Rahisa Shrestha, a former board member of Himalayan Distillery Limited, has been found guilty of selling the shares of HDL within a year of stepping down from the post.

According to the existing rules, a board member of a company cannot do so for a year of stepping down from the post. Thus, SEBON had the option to fine Rahisa Shrestha a fine from Rs. 50,000 to Rs. 75,000. SEBON has decided to fine her Rs. 75,000.

Meanwhile, Rahisa Shrestha is found to have sold the shares of HDL via Investment Management Nepal Pvt. Ltd (broker number 53), one of the 50 licensed broker companies in Nepal. Thus, SEBON has also ruled Investment Management Nepal Pvt. Ltd. guilty of not keeping a detailed record of its client, and not informing the regulatory authority when Rahisa Shrestha involved in such prohibited transactions. As punishment for this lack of accountability, Investment Management Nepal Pvt. Ltd is fined a sum of Rs. 1,50,000.

This is the first time a board member (even if stepped-down) of a listed company has been prosecuted and found guilty of financial misdoing. SEBON believes prosecutions like such will ensure a healthier and transparent playing ground in the securities market.