Bhrikuti Stock Broking (55th Broker) Suspended for Alleged 'Credit' Share Transactions

The Securities Board of Nepal (SEBON) has suspended Bhrikuti Stock Broking, a 55th-listed brokerage company, for engaging in share transactions on credit, violating regulations, and for serious negligence in the payment process.SEBON Director Anandraj Sharma confirmed the decision in a meeting held on Monday. He stated, "The board meeting held yesterday decided to suspend Bhrikuti Stock Broking until further notice and asked for clarification from the company."The Asset Recovery Department's investigation found significant financial discrepancies within the company. According to the department, controversial businessman Deepak Bhatt made share purchases of companies like Nepal Reinsurance, but instead of using his personal bank account, payments were made through various other individuals' accounts.As per existing securities trading regulations, brokers must collect at least a 25% margin payment from investors before facilitating share purchases. However, Bhrikuti Stock Broking did not adhere to this rule and allowed Bhatt to trade on credit, accepting payments from third-party accounts, thus increasing the risk associated with asset recovery.Following SEBON's decision, Bhrikuti Stock Broking is prohibited from engaging in any share transactions until further orders. The decision will directly affect the company's customers, who are served at various locations across Kathmandu and 10 other places in Nepal.