Kathmandu, December 16
The Securities Exchange Board of Nepal (SEBON) has determined that Guru Prasad Neupane, chairman of Ridi Power Company, and Gyanendra Lal Pradhan, chairman of Nepal Hydro Developers Company, have illegally traded shares.
Neupane and Pradhan were found guilty by SEBON as they traded shares while being part of the company’s board. Doing so is against the law.
The board has decided to take action against both Neupane and Pradhan but the two have been asked to give in their explanation.
Board sources said that if Neupane and Pradhan do not give a satisfactory explanation strict action would be taken as per the law.
“People think the board will not do anything to anyone who violates rules. This is not the case anymore. If found guilty, strict action will be taken,” said an official at SEBON.
There is a provision that bars people who are on the company’s board or have left the board to trade shares of the related company for at least a year. They can’t even do so in the name of the family members.
However, SEBON’s investigation shows both traded shares when in position.
