October 6: The government has fired chairman of Securities Board of Nepal (SEBON) Bhishma Raj Dhungana, who was earlier suspended for his alleged involvement in illegal purchase of shares. A meeting of the Council of Ministers on Tuesday decided to fire Dhungana from his post.

The former chairman is alleged to have purchased shares of Sarbottam Cement in the name of his daughter. He was asked to submit an explanation by the cabinet meeting held on September 27.

Although Dhungana submitted his explanation last Sunday, the government stated that his explanation was not satisfactory and proceeded with the dismissal. The government decided to dismiss him upon the suggestions of a committee formed to investigate the allegations of his involvement in insider trading.

An investigation committee formed by the Ministry of Finance had submitted a report to the Finance Minister after he was found guilty.

In a similar case, former chief executive officer of Nepal Stock Exchange Chandra Singh Saud, who was also involved in the purchase of share of the same company, resigned from his post to facilitate government investigation.

The previous government led by KP Sharma Oli had appointed Dhungana as the chairman of the board for four years in January 2020.

Sources say that the cabinet is yet to decide about appointment of a new chairman in place of Dhungana.