Case Registered against Gyanendra Lal Pradhan

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Case Registered against Gyanendra Lal Pradhan

May 9: The Securities Board of Nepal (SEBON) has registered a case against Gyanendra Lal Pradhan, the then-chairman of Nepal Hydro Developers Limited, in the Kathmandu District Court. A case was registered in the Kathmandu District Court on May 8, claiming that Pradhan had traded in securities against the law.

The board’s spokesperson Mukti Shrestha confirmed that a case has been registered against Pradhan in the Kathmandu District Court demanding action against him as per Section 98 of the Securities Act, 2063. According to the board, Pradhan sold the shares in the secondary market through his wife, contrary to the rule that forbids him from transferring shares in any way during his tenure as the chairman until a year after leaving the position.

"Even if Pradhan himself did not sell his shares, doing it through the help of his family is not justifiable," said Shrestha. 

Section 98 of the Securities Act, 2063, considers one to be a fraud if someone acts to deceive someone. Shrestha said that since it became clear that Pradhan deceived the regulatory body, the securities market and other stakeholders, he has to go through the legal process.

Earlier, the Board of Directors’ meeting held on April 1 had decided to take action against Pradhan, bar him from becoming a director of any listed company for 10 years, along with a cash fine. According to the provisions of the Securities Act, Pradhan has been fined Rs 75,000 in cash, and the board has taken action so that he cannot be reinstated as a director, general manager or similar position of any public limited company or organization for 10 years.

According to the provisions of the Securities Registration and Issuance Regulations, the directors, executive heads and other officials of listed companies are not allowed to buy and sell the shares of such companies or the company they are involved in by themselves or through their family members for a year after being in the office or after leaving the office. However, after receiving a complaint that Pradhan traded shares against the said provision, the board started an investigation from the last winter.

The investigation report has also been submitted to the Public Prosecutor's Office. As there is sufficient basis and evidence for the charges against Pradhan, the case has been registered in the District Court with the support of the Public Prosecutor's Office.

The board has been investigating the complaint of illegal securities trading with special priority. Earlier, the board had decided to take action against the then chairman of Ridi Power Company, Guru Prasad Neupane, who was accused of illegal securities trading, with a cash fine.

Neupane was also punished by the board with a fine of Rs 75,000 and barred from serving as a director, general manager or similar position of any listed company for 10 years. The board had registered a case against Neupane in the Kathmandu District Court on March 22.

 

 

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