The Securities Board of Nepal (SEBON) has suspended the operating license of Bhrikuti Stock Broking Pvt. Ltd. with immediate effect. The decision, taken on Chaitra 23, 2083, halts the company’s securities brokerage services until further notice.
SEBON found that the company violated existing legal provisions by misusing client funds. Specifically, it used money from one client’s share purchases and collateral to settle transactions of another client, in direct breach of regulations. Additional shortcomings identified by the board included accepting funds from buyers without following required procedures, making payments to sellers before receiving the corresponding funds, and allowing share purchases without collecting the mandatory 25% advance payment.
As of 2026 March 26, Bhrikuti Stock Broking’s total liability to investors exceeded NPR 5.11 billion. SEBON warned that the company’s practice of credit-based share allocation without clearing payments could negatively affect market prices and pose risks to the capital market.
Due to these ongoing irregularities, SEBON concluded that immediate suspension was necessary to prevent further losses to investors. During the suspension period, the board has instructed Bhrikuti Stock Broking to settle all outstanding amounts to investors in accordance with the law and ensure that clients trading through the company can continue transactions seamlessly through other licensed brokers.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
