Kathmandu. The Securities Board of Nepal (SEBON) has made it mandatory for a person or legal person to report that a person or legal person has made a transaction of Rs 10 lakh or more in a single day in the stock market.
The Securities Board of India (SEBI) has issued the Directive on the Prevention of Money Laundering and Terrorist Financing, 2083 with effect from October 13. This provision has been made in the same directive. The stock market-related index institution will have to provide the specified details to the financial information unit through the prescribed software within 15 days from the date of transaction if any person or legal person makes a transaction of Rs 10 lakh or more in the same day or repeatedly.
Similarly, if the customer transacts within the prescribed limit of Rs 10 lakh or more, the indexing institution will have to prepare a separate record regarding the transaction amount, records or account operation. The source of the money used in such transactions will also have to be mentioned and updated.
However, it is not necessary to send the details of the transactions carried out by the government offices and institutions to the indicator organization unit.
The following entity transaction details should not be sent{
}
- Transactions carried out by the Government of Nepal or an office or agency under the Government of Nepal.
- Transactions carried out by a body established under a special act.
- Transactions established by a corporate body registered with the Securities Board for the purchase or sale of securities and a subsidiary institution licensed by the Securities Board.
However, in the case of the exempted transactions, the exemption will be deemed to be to identify the suspicious transaction and prepare the details and send it to the Financial Information Unit.
Similarly, the directive has tightened the identification of customers in the stock market. The directive provides that the indicative institution should regularly update the basic information and documents of the customer and the real owner and other details on the basis of risk by using electronic technology. For this purpose, the directive provides that an information technology system should be developed and implemented.
