Finance Committee Directs Government to Take Action Against SEBON and NEPSE Officials

The House Finance Committee has directed the government to immediately investigate and take action against the officials of Securities Board of Nepal (SEBON) and NEPSE for their involvement in the stock market.

After collecting information on the matter from Finance Minister Janardan Sharma and Finance Minister Madhu Marasini, the committee directed the ministry to take action on the case and provide details about it. The committee recommended promoting transparency, morale, good conduct, responsibility and accountability by maintaining the sustainability and stability of the stock market.

The ministry was also asked to draft a list of reforms at the political, legal, structural, regulatory and technical levels to improve the stock market. Earlier in the meeting, Finance Minister Sharma said the issue had been brought to the attention of the ministry and a committee had also been set up to look into the case.

“The ministry has been brought to the serious attention of the Salbottam Cement share deal,” he said, adding that the investigation was aimed at resolving the issue and ensuring the safety of the people. He said a committee has been formed to take the matter seriously and if malicious intent is found, the committee will recommend legal action.

Due to the COVID-19 pandemic, the stock market closed down other available investment areas, thus attracting investors. Prior to this, Commission Chairman Krishna Prasad Dahal had tried to make the capital market healthy, fair and transparent to ensure the safety of small investors. The government should pay close attention to the possibility of capital market irregularities.

The committee members believe that the association of SEBON and NEPSE officials in equity trading is an ethical issue, so it is wrong. Former Finance Minister Surendra Prasad Pandey said that the stock market is not yet considered as people’s property and has not yet gained public trust. He said that transparency in the stock market is necessary and Ram Kumari Jankri MP believes that there should be a probe into the involvement of SEBON and NEPSE officials in share trading.