SEBON to monitor share trades above Rs 1 million a day

The Securities Board of Nepal (SEBON) has introduced a new arrangement to monitor anyone trading Rs 1 million or more worth of shares in a single day.

The provision is part of a 2083 BS directive issued by the board to prevent money laundering and the financing of terrorist activities.

Under the directive, if anyone carries out such a transaction in a single day, the concerned reporting institution must keep a record of it. That record must be sent within 15 days through a system designated by the Financial Information Unit.

A separate record of the amount, documentation and account operations related to such transactions must also be maintained. The directive requires that the source of funds used in the transaction be disclosed as well.

The board says this will make it easier to monitor where money invested in shares comes from and how it is used. The directive also includes a provision requiring customer identification based on the national identity card.