Investigation of stock insider trading to the police

Sections 91 to 100 of the Act deal with insider trading, concealment of information or information, false trading, price fluctuations, market influencing, providing misleading information, fraudulent transactions, concealment of documents, records or information, etc. If there is a complaint regarding the violation of the mentioned provision and if it is believed that there is a violation, there is a provision that the Chairman of the Securities Board should conduct an initial investigation through the authorized level staff of the Board.

"During the preliminary investigation of the complaint, the officer of the board may interrogate the person or organization related to the offense, and demand the necessary documents, details and records," the act states, "If it is found that the offense mentioned in sub-section (1) has been committed from the documents and evidence obtained during the investigation, such In order to investigate the crime, the complaint, collected details and evidence must be sent to the police headquarters within 30 days. When sending the complaint along with the investigation, there is a provision that the name of an officer of the board can be disclosed to coordinate and assist in the investigation. For

investigations, the police should appoint at least inspector-level staff as investigation officers. The law states that after the investigation, a report should be sent to the relevant public prosecutor's office and a decision should be made whether or not to proceed with the case.

This arrangement is contrary to international principles and good practices related to capital markets. Since the police do not have enough expertise, knowledge and experience in this matter, it will have a negative impact on the overall market," says Navraj Adhikari, senior executive director of the board. "This arrangement is likely to increase the distortion. The main responsibility of the board has also been taken away.' He said that by amending the law, the full authority of investigation on the mentioned matter should be brought under the board.

Earlier, the then chairman of Reedy Power Company, Guru Prasad Neupane, was found guilty of money laundering in a case submitted by the Board after investigating insider dealings. A joint bench of special court judges Teknarayan Kunwar, Ram Bahadur Thapa and Muraribabu Shrestha convicted Neupane. When he was the president, he was accused of insider trading in Ridi's shares and facilitating him in the decision-making process.

The money laundering investigation department filed a case in a special court. This is the first case filed by the department related to insider trading of shares. Assets amounting to 19 million rupees, which have been cleared and released, are to be confiscated from among the assets that have been withheld during the investigation in accordance with subsection 2 of section 18 of the same act, and the punishment to be imposed against the other defendant, Nepal, according to the Prevention of Asset Laundering Act. The department had demanded that the sentence be half. The department determined that Neupane had engaged in insider trading during the purchase and sale of the company from 077 March 19 to 078 July 24.

Section 91 of the Securities Act 063 mentions offenses and punishments related to insider trading of securities, in which a person deals in securities based on inside information or information that may affect the price of securities that are not public, or causes others to trade in securities or knows It is mentioned that such a person who gives information or information to others other than in the course of fulfilling his duties is considered to have engaged in insider trading of securities.