SEBON Chairman Bhishma Raj Dhungana Sacked, Guilty of Insider Trading, Being Influenced by Power Centers, and Benefitting Unethically

Bhishma Raj Dhungana, Chairman of the Securities Board of Nepal has finally been sacked.

A cabinet meeting held on Tuesday decided to dismiss board chairman Dhungana. He was accused of illegally buying shares of Sarbottam Cement through the OTC market, publishing a list of 51 companies under the influence of various power centers, acting unethically in the stock market, and taking financial benefits from various parties in the market.

Earlier, Dhungana was suspended by the Finance Ministry with the order to submit a clarification. He had then even handed over an explanation to the government. But the government did not find the explanation satisfactory, and the cabinet meeting decided to sack the chairman.

Dhungana was primarily involved in the purchase of shares of Sarbottam Cement, which is preparing to become the first company to open the sale of shares to the public through the 'Book Building' process. He had bought the shares of Sarbottam Cement from the OTC market in the name of his daughter Rebecca Dhungana who was in the US while he was the chairman of the board.

Chandra Singh Saud, Chief Executive Officer of the Nepal Stock Exchange (NEPSE), was also involved in the case. Saud had then resigned on moral grounds. Board chairperson Dhungana, however, had refused to resign saying he was not guilty.