A complaint has been filed at the Securities Board of Nepal (Sebon) demanding investigation into suspected insider trading of shares of four hydropower companies.
Dhruba Prasad Bhatta, who identified himself as an ‘investor’, filed an application at the regulatory board seeking investigation into alleged insider trading of stocks belonging to Arun Valley, Ridi, Rairang and United Modi hydropower companies.
Bhatta alleges that sensitive information that could affect the share prices of the companies were leaked and those who received the information made profits. Bhatta says that information related to the issuance of right and bonus shares were made available to insiders who bought the shares just before their prices increased and sold them at high prices.
The complaint comes as board chairman Bhisma Raj Dhungana himself is under investigation for abusing his authority to buy shares of Sarbottam Cements, which is preparing an initial public offering using the book building method, at a low rate.
Although insider trading was suspected in other companies in the past, the board has rarely taken action against those involved.