Kathmandu: The Nepal Securities Board has taken regulatory action against three broker companies for violating provisions of the Asset (Money) Laundering Prevention Act, 2008 (2064 BS).

According to the Board, the action was taken against the companies for breaching Section 7(a), Sub-section 4 (d), and Section 7(c) of the Act.

The broker firms facing action are:

• Sipla Securities Limited
• Shree Krishna Securities
• Hatemalo Financial Services Pvt. Ltd.

Financial penalties imposed

The Securities Board has imposed monetary penalties on the three companies. According to the regulator:

• Sipla Securities has been fined NPR 5 million
• Shree Krishna Securities has been fined NPR 3 million
• Hatemalo Financial Services has been fined NPR 3 million

Repeated violations despite warnings

The Board stated that these broker companies had previously been warned multiple times for violating various regulatory provisions and compliance requirements. However, despite repeated cautions, the firms continued to breach the rules.

Following continued non-compliance, the Board finally initiated disciplinary action. The regulator has also warned that stricter action will be taken if the companies fail to improve their compliance in the future.