The Securities Board of Nepal (SEBON) has suspended Broker No. 55, Bhrikuti Stock Brokerage Company, and has requested clarification from the company. The decision was made during the board’s Monday meeting, citing violations of legal provisions. SEBON alleged that the company conducted share trades on credit for businessman Deepak Bhatt, transferred shares without receiving payments, and failed to maintain the mandatory 25% margin.
The Financial Investigation Department has arrested Deepak Bhatt for further investigation. Preliminary data indicates irregularities totaling approximately Rs 3.81 Arba. Investigations show that funds from entities including Himalayan Reinsurance, Himalayan Securities Banker, HLI Large Cap Fund, and Nepal Micro Insurance were misused to purchase shares in the secondary market. Payments were traced to the accounts of various individuals and institutions.
SEBON’s findings revealed multiple compliance failures by Bhrikuti Stock Brokerage. The company did not complete proper KYC procedures, failed to secure required collateral, violated instructions from NEPSE and SEBON, and displayed serious negligence in its payment systems. In some instances, shares were reportedly transferred without actual payments being made.
Under Section 88 of the Securities Act, SEBON has imposed a three-month suspension and a fine on Bhrikuti Stock Brokerage. Until further notice, the company is prohibited from conducting any share transactions.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
