Kathmandu. The Securities Board of Nepal (SEBI) has decided to look into the details of share transactions made by the founding shareholders against the law for the last 10 years.

Sebon TAG_OPEN_p_23 is investigating after it was found that shareholders of companies other than banks and financial institutions in hydropower, hotels and tourism, production and processing, trading and other groups sold shares in violation of the law.

According to highly placed sources close to the board TAG_OPEN_p_22, there have been several complaints in Sebon that the founding shareholders of such groups of companies have transacted against the law without opening the lockin period. A top source close to the board said, “It has been found that the shares have been sold without the lock-in period for a long time.

Such activities that are against the law will be stopped and previous transactions will be investigated and brought to justice. According to sources, Sebon is also conducting an internal study about some companies that have done business against the law.

TAG_OPEN_p_20 The Securities Registration and Issue Rules, 2073 and the Guidelines on Institutional Good Governance of Listed Organized Organizations, 2074, prohibit the directors of the listed companies from buying and selling shares of the same company for one year as long as they remain in office and after assuming office.

According TAG_OPEN_p_19 to Rule 381(a) of the Securities Registration and Issuance Rules, 2073, “The director, executive chief, auditor, company secretary or person directly involved in the management or accounting work of an organized organization, while holding such office or for one year from the date of retirement from such post, the securities of the concerned organized organization or its subsidiary company are under the control of himself or any other person or such person; There is no provision to transfer or transact in the name of the company or institution or to buy and sell to other people.”

Directive 14 (6) of the Guidelines on Institutional Governance of Listed Organized Organizations since

states that “no person shall be allowed to buy and sell any kind of shares or debentures of the same organization for one year as long as he continues in the post of director and removes from that post”. According to the regulations and guidelines, the sale of shares cannot be done for one year after being a director and one year after leaving.

, but some investors sell shares in this way.

Ram Shrestha, chairman of TAG_OPEN_p_16 the board of directors of Ankhukhola Hydro, and two directors Ram Prasad Sapkota and Dinesh Prasad Shrestha had sold 92,800 shares in violation of the law.

Similarly TAG_OPEN_p_15, Surendra Kumar Goyal and four members of his family have traded shares worth crores of rupees in violation of the Securities Act during their tenure as chairman of Shivam Cement. Goyal had sold 2,743,900 units of shares in the name of his family members in violation of the law. He had sold the shares on April 23, 2018.

Anil Kumar Rungta TAG_OPEN_p_14, the then chairman of Radhi Power Company, sold shares worth Rs 2.17 billion in violation of securities board laws.

He has sold 2 TAG_OPEN_p_13.16 million units of shares worth Rs 2.17 billion from May 1, 2019 to October 15, 2019. Sebon said it was also studying the matter.