SEBON suspends Pragyan Securities to investigate possible insider trading

Securities Board of Nepal (SEBON) has suspended Pragyan Securities Private Limited (Stock Broker No. 10) from today (Jestha 8, 2074). As per the Board, the broker’s Biratnagar branch had leaked sensitive information related to upcoming right share of Civil Bank Limited (CBL) which was not yet made public. A message sent to over 200 contacts in a Viber group said that Civil Bank will be revising its earlier proposed 30% right share to 40%. Moreover, it called for traders to buy CBL shares so that they could make money. The message also promised to come up with “money making news” in the future and asked traders to transact through Broker No. 10 Biratnagar branch. Issuing a press statement, SEBON said that it had initiated investigation into the matter, and the broker will remain suspended until the investigation is over.