Kathmandu. The Securities Board of Nepal (SEBON) has suspended Bhrikuti Stock Broking Limited (Bhrikuti Stock Broking Limited) for failing to operate financially.

A meeting of the Board of Directors held on Monday decided to suspend the broker for three months. The decision is yet to be decided. According to the board, the minutes will be held by this evening.

According to the board, the decision to take action was taken after the broker was found to have been doing credit business for a long time.

The broker is taking action against Deepak Bhatta, who is currently being investigated for money laundering, after he was found to have borrowed millions of rupees against the rules.

According to a source in the board, the broker has not been able to operate regularly while trading on credit. An official of the board said that they had to be suspended as they were financially unable to operate on a daily basis.

In addition, the Department of Money Laundering Investigation is currently investigating the investors and some directors of the broker.

As per the current legal provision, brokers are required to collect at least 25 percent margin from investors before trading in shares. The broker has not complied with this legal provision.

When Sebon suspended the broker for three months as a result, the issue of whether the investors in the broker will be able to trade or not has become a concern for everyone.

According to an official of the board, even if action has been taken against the brokers, the investors will not be deprived of trading in shares. There will be some hassle for that.

When the board suspends Bhrikuti Stock Broking for three months, investors can trade with a new TMS from another broker. The demat number will remain the same.

According to a source at the board, the board is preparing to issue a directive to the investors to facilitate the trading of other brokers while sending a letter of action to the broker after Monday’s decision was minimized. In that instruction, it is ready to be clearly written how to facilitate.

“No investor should suffer when the broker or the director of the broker makes a mistake. When that happens, the investment of thousands of investors will be held hostage,” said the official of the board. Investors will be allowed to trade through other brokers.

The broker has 8 branches in Kathmandu. It has branches in Dhulikhel, Charikot, Birendranagar, Beni, Itahari, Birgunj and Bardibas.