19 August 2024, Kathmandu
The Securities (First Amendment) Bill, 2081, has been officially registered in the Federal Parliament’s House of Representatives, marking a significant step in strengthening the regulatory powers of the Securities Board of Nepal (SEBON).
Securities First Amendment Bill 2081
The bill introduces new provisions, including the authority for SEBON to investigate banking transactions related to securities trading.
Under the proposed amendments to the Securities Act, of 2063, SEBON will be empowered to request records of banking transactions from Nepal Rastra Bank if such information is required to investigate transactions involving securities by any individual, company, or organization. This expanded authority aims to enhance transparency and accountability in the securities market.
The bill also introduces stricter penalties for violations of securities laws, particularly concerning insider trading and market manipulation. Individuals found guilty of engaging in insider trading could face penalties of up to three years imprisonment, fines ranging from NPR 5 million to NPR 30 million, or both. In cases of false transactions, price manipulation, or providing misleading information, offenders may face similar penalties, including up to three years imprisonment or fines ranging from NPR 500,000 to NPR 5 million.
Additionally, the bill addresses the issue of false disclosure and non-compliance with required reporting. Individuals or entities that knowingly submit false information, or fail to keep or submit required documents on time, could be fined between NPR 500,000 and NPR 20 lakh. These measures are intended to reinforce the integrity of the securities market by holding individuals and entities accountable for accurate and timely reporting.
The introduction of the Securities (First Amendment) Bill, 2081, underscores the government’s commitment to enhancing the regulatory framework governing Nepal’s securities market. By granting SEBON greater investigative powers and imposing stringent penalties for violations, the bill aims to ensure a more transparent and reliable market environment for investors and stakeholders.
Securities First Amendment Bill 2081