Insider Trading: Up to three years in prison proposed

Kathmandu, August 18 - A new proposal suggests that individuals involved in 'insider trading' in the stock market could face penalties of up to three years in prison.

The proposal is part of a bill to amend the Securities Act, 2007, which has been introduced in Parliament by the Ministry of Finance.

Under this bill, those found guilty of 'insider trading' could be subjected to fines, imprisonment for up to three years, or both.

Currently, the penalties for 'insider trading' include fines and imprisonment of up to one year.

The bill also proposes penalties for artificially inflating or deflating share prices. Those involved in such activities could face fines, imprisonment for up to three years, or both. In cases where the offense involves non-disclosure, fines ranging from 500,000 to 5 million rupees, imprisonment for up to three years, or both have been proposed.

At present, penalties for these offenses range from fines of 50,000 to 150,000 rupees, imprisonment for up to one year, or both.