Market momentum holds; SEBON finds Bhrikuti’s irregularities expose billions into risk

The stock market climbed on Thursday, with the NEPSE index gaining 48.71 points to close at 2,851.24. All sectoral indices posted gains, led by the “Others” sector, which rose 3.43%. A total of 251 companies saw their share prices increase.

Eight companies hit the positive circuit limit, including Aatmanirbhar Laghubitta, Reliance Spinning Mills, Bhujung Hydropower, Rizline Energy, Solu Hydropower, Hotel Forest Inn, Super Khudi Hydropower, and Suryakund Hydropower. Meanwhile, investors in 16 companies faced losses.

Trading volume reached NRs 9.91 billion, with National Hydropower Company leading at NRs 434.7 million, followed by Ridi Power at NRs 413.4 million and Himalayan Reinsurance at NRs 398.6 million.

Over the past two days, NEPSE has surged 93.83 points, 45.12 on Wednesday and 48.71 on Thursday, with Thursday’s trading volume also being higher than Wednesday’s NRs 8.31 billion. A total of 15.59 million shares were traded across 327 securities.

Among the top gainers, six companies rose 10%, while Super Khudi Hydropower and Suryakund Hydropower climbed 9.99%. The largest loser was NIC Asia Balanced Fund, down 6.74% to NRs 9.83, followed by Swet Ganga Hydropower, down 2.55% to NRs 413.20.

The market’s rise was supported by gains across all 13 sectoral indices, with the “Others” sector posting the highest increase of 3.43%.

Investigations reveal Bhrikuti Stock Broking exposed to risks exceeding NRs five billion

Investigations have revealed that investors dealing through Bhrikuti Stock Broking Company, a stock broker, were exposed to risks exceeding NRs five billion due to irregular transactions.

SEBON’s review confirmed violations of the Securities Business Regulations, the Securities Transaction Clearing and Settlement Regulations, and the Securities Trading Operations Regulations. “Bhrikuti’s actions, using client funds for unrelated trades and failing to follow proper settlement procedures, posed serious risks to investors and market integrity,” SEBON stated.

As of March 12, Bhrikuti owed investors NRs 5.113 billion. SEBON also noted that the brokerage enabled risky credit-based purchases and manipulated share transfers, further jeopardising investors and market stability.

SEBON has instructed Bhrikuti to return the investors’ funds and allowed clients to trade through other brokers during the suspension, ensuring technical arrangements for uninterrupted transactions.

SEBON suspended Broker No. 55 on Monday, issuing a notice seeking clarification from the company.