Sebon seeks clarification from 11 brokerage firms- My Republica


KATHMANDU, Dec 22: Securities Board of Nepal (Sebon) has sought clarification from 11 brokerage firms for failing to submit quarterly report to the capital market regulator on a regular basis. 

It has instructed the brokerage firms to immediately furnish clarification on why they failed to present the report in time. The capital market regulator has sought clarification from Sweta Securities Pvt Ltd, Kohinoor Investment and Securities Pvt Ltd, Siprabi Securities Pvt Ltd, Premier Securities Pvt Ltd, Sipla Securities Pvt Ltd, Sagarmatha Securities Pvt Ltd and Primo Securities Pvt Ltd. Similarly, other brokerage firms, who have been asked to furnish clarification, include Opal Securities Pvt Ltd, Arun Securities Pvt Ltd, Shree Krishna Securities Pvt Ltd and Dipshikha Dhitopatra Karobar Company Ltd. 

Though stock brokerage firms are required to present their quarterly reports within 30 days of the end of the quarter, they are yet to make such regulatory filing. Not only brokerage firms, many listed companies, merchant banks and other market makers have not yet submitted their annual reports of 2014/15. According to a corporate reporting status of Regulation Department of Sebon posted on its website, 95 listed companies have not filed their annual report of 2014/15 yet. Likewise, 10 merchant banks have not submitted their report of the fourth quarter of the last fiscal year. 

Paristha Nath Poudyal, executive director of Sebon, told Republica that the capital market regulator was also planning to seek similar clarification from other listed companies who have flouted its reporting rules. “We have begun from brokerage firms. Within a day or two, the clarification letter will be dispatched to all the companies who have not submitted their reports and corporate disclosures to Sebon,” said Poudyal. “The move is aimed at ensuring corporate discipline.”

Securities Businessperson (Stock Broker, Securities Dealer and Market Maker) Regulations, 2008, requires the companies to submit their audited annual report within three months of the completion of the fiscal year, while quarterly report should be submitted within thirty days of the completion of the quarter.

Poudyal also warned of stringent actions if the companies fail to comply with the reporting requirement. “We are now seeking clarifications. If companies repeatedly violate rules, Sebon may temporarily halt trading of securities of the listed companies. We can even terminate license issued by Sebon for the business of securities,” he added.


Published on: My Republica (December 22, 2015)