Broker Scandal Jeopardizes NPR 500 Crore of 80,000 Investors in Nepal's Securities Market

Nepal's Securities Board (SEBON) has suspended Bhirkuti Stock Broking Company for severe irregularities, including mixing customer funds and unauthorized trading. This action threatens around 80,000 investors' investments worth approximately NPR 5 billion, exposing the fragility in brokerage operations. Such malpractices undermine confidence in the Nepali stock market (NEPSE), potentially deterring new investors ahead of the March 5 election. The case exemplifies risks of unregulated brokerage activities and stresses the need for stricter monitoring. Investors should remain cautious and prioritize transparency when choosing brokers to protect their financial interests.

• Broker irregularities put NPR 5 billion and 80,000 investors' money at severe risk in NEPSE.