The Nepal Securities Board (SEBON) announced its plan to implement a ‘Zero Tolerance’ policy to crack down on insider trading, market manipulation, and deceptive investment promotions spread via social media.
SEBON has declared that it will adopt a ‘Zero Tolerance’ policy against activities like insider trading, market manipulation, and misleading investment advertisements on social media. This initiative was part of the Capital Market Policy for the fiscal year 2083/84, through which the board aims to intensify its monitoring and legal actions against such practices.
Strengthening Legal Frameworks
As per the new policy, SEBON will draft a new ‘Securities Market Management and Offenses and Penalties Act’. This act will focus on controlling financial crimes such as insider trading, price manipulation, fake transactions, and other activities that affect the market. The board’s goal is to make investigation, prosecution, and punishment procedures more effective.
Regulating ‘Finfluencers’
Individuals known as ‘finfluencers,’ who influence the stock market through social media, will also come under regulatory scrutiny. SEBON plans to analyze the impact of information and recommendations these individuals provide. It will increase vigilance against misleading promotions and unauthorized investment advice, prepared to initiate legal action if it deem necessary.
Advanced Surveillance and New Department
To quickly identify suspicious transactions in the market, SEBON will develop an automated surveillance system. This system will be powered by Artificial Intelligence (AI) and Big Data analysis. Furthermore, the policy includes a plan to establish a ‘Market Intelligence and Investigation’ department within the board. This new department will strengthen both investigation and law enforcement efforts.
Professional Standards and Compliance
In addition, clear licensing systems and professional codes of conduct will be introduced for organizations and individuals offering investment advisory, research, and analysis services. The board aims to develop a compliance culture and professional ethics among market participants. This step hope to control financial fraud and market manipulation effectively.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
