Sebon asks Nepse to freeze disputed Nepal Bangladesh Bank shares
Capital market regulator has finally woken up and asked the fr0nt line regulator to freeze the transaction of disputed shares of Nepal Bangladesh Bank (NB Bank).
Securities Board of Nepal (Sebon) today directed Nepal Stock Exchange (Nepse) to stop transactions of Nirmal Pradhan and Laxmi Bahadur Shrestha and his family members's stocks of Nepal Bangaldesh Bank (NB Bank).
The investors, who have bought the shares from Pradhan could not be transferred due to dispute between Pradhan and Shrestha.
Pradhan, who had NB Group's 220,000 stocks of Nepal Bangladesh Bank in collateral, sold them but Laxmi Bahadur Shrestha moved the court and succeeded getting court order to halt the transfer of those shares.
Of the total NB Group sold, some 118,000 units stocks have been transferred to the new buyers but the rest are still in fix. The dispute has affected some 1,000 investors as they are waiting for ownership transfer.
After the investors appealed to the regulator, Sebon formed a probe committee that will submit report within a couple of days.
Earlier, stockbrokers have unilaterally stopped the trading of Nepal Bangladesh Bank stocks, which was illegal.
The Nepse has also directed the Nepal Bangladesh Bank – as expected – to postpone the bank's annual general meeting until the issue is settled.