October 6, 2021 | Investopaper
Bhishma Kumar Dhungana, chairman of the Securities Board of Nepal (SEBON), who was appointed for four years, has been dismissed by the cabinet meeting held on Tuesday with 27 months left.
A meeting of the Council of Ministers held on Monday last week had directed Chairman Dhungana to submit an explanation within three days. Earlier, the government had formed a judicial inquiry committee, which recommended dismissal of Dhungana.
The meeting of the Council of Ministers had formed a three-member committee under the coordination of former High Court Judge Anantraj Dumre. Earlier, the Ministry of Finance had formed an investigation committee to conduct the study. A committee formed under the coordination of the former judge has already submitted its report.
It was found that the shares of Sarbottam cement were bought in the name of Rebecca, daughter of Dhungana. The 11,912 shares of the company were found in the name of Rebecca Dhungana, daughter of Dhuganna, and the same number of shares in the name of Sushila Kumari Bohora, wife of Chandra Singh Saud, chief executive of the Nepal Stock Exchange.
The government was under pressure to investigate after Dhungana, chairman of the Securities Board, bought shares in the name of his daughter and Chandra Singh Saud, CEO of Nepse, in the name of his wife. It is estimated that the price per share will be around Rs 750 when Sarbottam Cement issues an IPO through book building.
Saud, the then chief executive officer of the Nepal Stock Exchange, has resigned from the post. However, Dhungana has been reluctant to resign.