SEBON takes action against 3 broker companies involving in fake securities transactions

SEBON has taken action against 3 broker companies and their CEO for their involvement in fake securities transactions. This is the biggest action taken by SEBON till date where a fine of Rs 10 lakh each has been levied upon 2 of the companies. The broker companies were involved in the fake transaction of 3 hydropower companies i.e. Chilime Hydropower Company, National Hydropower Company and Sanima Mai Hydropower Company. SEBON has claimed that they have found Agrawal Securities’ involvement in the fake transaction of the shares of Chilime Hydropower Company and Shreehari Securities were found in the involvement of fake transaction of shares of National Hydropower Company. Both the broker companies were charged with a fine of Rs 10 lakhs each and were further charged with a fine of Rs 50,000 for not maintaining Know-Your-Customer (KYC) records. Similarly, Siprabi Securities have also been charged with a fine of Rs 50,000 for not informing the board even after having the information about such transactions. Also, SEBON decided to write a reprimand for violation of rules and proper identification of its clients to Siprabi Securities Pvt. Ltd. The board has clarified that the action has been taken according to the Money Laundering Prevention Act 2008 and Securities Businessperson (Stock Broker, Dealer and Market Maker) Regulation. A case had been lodged on 23rd Asadh on the Kathmandu District Court.