September 29: The Securities Board of Nepal (SEBON) is preparing to take action against the Nepal Stock Exchange (NEPSE) regarding the issue of Transaction Management System (TMS).

Informing that a meeting of the board management committee of SEBON decided to take action against NEPSE, Chairman of the board Ramesh Kumar Hamal said that they have sought an explanation from NEPSE on this matter. Hamal said that NEPSE will be given 15 days for submitting a written explanation. He added that the board will take legal action if the explanation is not satisfactory.

Hamal made it clear that action will be taken against anyone found guilty in sensitive matters related to securities transactions. Hamal clarified that although both the SEBON and NEPSE are government agencies, this is the first time one government agency is preparing to take action against the other involved in the share market.

The board claimed that sensitive data of the securities market is within the reach of a particular company. Currently, the TMS and NEPSE Online Transaction System (NOTS) developed by YCO Company are in operation for managing the transactions of the secondary market of securities. The board decided to take action against NEPSE and asked for an explanation because all the details of the investors of the secondary market have been accessed by the private company YCO.

Although NEPSE received a letter from the board on September 24, the letter was not opened as Chief Executive Officer Krishna Bahadur Karki was out of the country for an event. NEPSE information officer Murahari Parajuli informed that the letter will be opened only after the chief executive officer is present at the office and the necessary action will taken.

In recent days, the board has stepped up efforts to take action in order to regulate the secondary market. Only a few days ago, the board took action against Care Ratings Nepal imposing a cash fine. The board imposed a cash fine of Rs 50,000 after it was found that the rating company was involved in rating against the law. This was the first incident where the board took action against the rating company. Apart from this, the board has also taken action against various broker companies, institutional investors and merchant bankers.