Sebon Has Decided To Initiate Action Against Gyanendra Lal Pradhan For Getting Engaged in Insider Trading

Securities Board of Nepal (SEBON) has decided to take action against the then executive chairman of Nepal Hydro Developer Limited, Gyanendra Lal Pradhan, who was involved in insider trading.

The board has resolved to take legal action against him for transacting in violation of the Securities Registration and Issuance Regulations, along with levying a monetary punishment.

When he was in a position of authority, Pradhan, the then-chairman of Nepal Hydro Developer Limited, traded shares illegally. It has come to light that, Pradhan sold shares of Nepal Hydro Developers Limited that were registered in the names of his family members on the secondary market which is in violation of the Securities Act.

A director, executive head, auditor, company secretary, or person directly involved in the management or accounting of an organized organization while holding such a position or from such a position for one year following the date of retirement is prohibited from purchasing, selling, transferring, or otherwise transacting in the securities of the related organization or its subsidiary, according to Regulation 38 Sub-rule (1) of the Securities Registration and Issuance Regulations, 2073.

Additionally, in line with subsection 7 of section 101 of the Securities Act of 2063, the board fined Pradhan Rs. 75,000 in cash. The board has also taken action to bar him from serving as a director of a public business for the subsequent ten years.

Earlier, a charge sheet against power entrepreneur Guru Prasad Neupane had been filed in the Kathmandu district court, seeking recovery of over Rs 32 million in fines with imprisonment. Neupane made over Rs 32 million in benefits by illegally trading stocks of Ridi Power Company Limited while he was the company’s chairperson, according to the indictment.