KATHMANDU, APRIL 4
Securities Exchange Board of Nepal (SEBON) has announced an investigation into alleged insider trading in the shares of Ajod Insurance Limited (AIL), on Tuesday.
Issuing a press statement today, the securities market regulator has said that its attention has been drawn towards various articles in media and complaints lodged at the board claiming instances of insider trading in AJOD scrips.
According to the statement, the board had written to Nepal Stock Exchange (NEPSE), the country's sole secondary market, to furnish details of the trading of Ajod Insurance, on March 31.
Following this, NEPSE had already submitted a report which showed the unusual trading of the scrips of AIL on March 29 in which the market had observed a circuit breaker following a 10 per cent increase in trading of it's shares, a day before the AIL announced 50 per cent right shares.
The board has formed a sub-committee in coordination with the SEBON director to probe into the matter. The board has also claimed that appropriate action will be taken if proofs on insider trading were found in course of investigation.