Nepal Bangladesh Bank AGM to be deferred, regulator’s weakness to cost investors millions
Due to weak regulator, the Nepal Bangladesh bank annual general meeting (AGM) is likely to be deferred.
In a free market economy, when the regulator is weak, the common people will suffer. And what could be best example than the latest decision of stock brokers, who have stopped trading of Nepal Bangladesh Bank stocks punishing the general investors due to fight between the two big investors.
The capital market regulator Securities Board of Nepal (Sebon) and front line regulator Nepal Stock Exchange (Nepse) are, instead of penelising promoter of NB Group Laxmi Bahadur Shrestha and Nirmal Pradhan and force them to settle the complications of ownership transfer of Nepal Bangladesh Bank, likely to agree to defer the AGM of the bank scheduled for March 11.
The stock brokers have stopped trading the Nepal Bangladesh Bank and National Hydropower stocks to pressurise the regulators in the 'illegal' way that has curbed the fundamental rights of a general investor.
Securities Board of Nepal has though claimed that it has started probing the case, it has failed to perform its duty as a regulator.
Nirmal Pradhan and his partner cashed in on 220,000 units of Nepal Bangladesh Bank stocks that according to the NB Group did not belong to them but was kept as collateral has resulted in the loss of millions to more than 1,000 investors, who have bought those stocks unknowingly.
The investors bought the stocks of Nepal Bangladesh bank as it has proposed 17.89 per cent cash dividend apart from including 10 percent bonus shares that is yet to be approved by the AGM and central bank.