29th June 2025, Kathmandu
The Securities Board of Nepal has taken action against two brokerage companies for not submitting their audited financial statements on time. Apple Securities (Broker No. 101) in Kathmandu’s Naxal area and Beni Securities (Broker No. 93) in New Baneshwor were fined NPR 5,000 each. The fine is a result of violations of the Securities Act, 2063.
SEBON Fines Late Broker Reports
Failure To Submit Audited Reports
Both brokerage firm submitted their audited financial and economic reports for the fiscal year 2080/81. According to the Securities Act, all brokers must submit their audited reports to the Securities Board of Nepal within a given timeframe. This submission ensures transparency and accountability in Nepal’s securities market.
The Securities Board of Nepal noticed the delay and took prompt action. Since it was the first offense, the Board imposed a cash fine of NPR 5,000 on each broker.
Securities Board’s Role In Market Regulation
The Securities Board of Nepal strictly monitors all market players. It ensures that brokers and other entities follow regulations. Regular submission of financial reports is mandatory to maintain market integrity.
By enforcing these rules, the Board promotes investor confidence. Transparency in financial disclosures helps investors make informed decisions. The Securities Board of Nepal’s action highlights its commitment to maintaining a fair and orderly market.
Implications For The Brokerage Industry
This fine serves as a reminder for all brokerage firms. They must comply with statutory requirements promptly. Failure to submit financial statements can lead to penalties and damage to their reputation.
The brokerage industry plays a critical role in Nepal’s capital market. Firms must adhere to legal obligations to protect investors and maintain trust. The Securities Board of Nepal continues to emphasize compliance to support a healthy financial ecosystem.
Looking Ahead
The Securities Board of Nepal encourages all brokers to improve their reporting practices. It plans to increase oversight and take strict action against violations. Brokers should submit their audited financial statements on time to avoid penalties.
Nepal’s capital market is evolving rapidly. Clear regulations and timely compliance are essential for sustainable growth. The Securities Board of Nepal remains vigilant and proactive in regulating the market.
Conclusion
The fines on Apple Securities and Beni Securities send a strong message. Compliance with the Securities Act is non-negotiable. Brokers must submit their financial reports on time to ensure transparency and investor protection. The Securities Board of Nepal will continue to enforce rules strictly for a transparent and reliable securities market in Nepal.
For more:- SEBON Fines Late Broker Reports