Broker firms accused of misusing capital and undermining financial discipline

english.clickmandu.com · 6 days ago

Securities brokers and stock dealers in Nepal's share market are accused of financial misconduct, including bypassing paid-up capital requirements and channeling company funds back to shareholders. The Auditor General's report found that some firms increased capital only on paper, with money later circulated back to directors and shareholders through advances. This practice has weakened the financial foundation of these institutions and raised concerns about corporate governance. The Nepal Stock Exchange is also criticized for failing to monitor suspicious stock price movements.