CIT Bars its Employees from Stock Trading in Secondary Market

Nov 24, 2019 04:25 PM Merolagani

Citizen Investment Trust (CIT) has barred its employees from securities trading in the secondary market by implementing Citizen Investment Trust Code of Conduct Guidelines, 2076.

As per the code of conduct, employees and their family member are prohibited from the securities trading in the secondary market. However, they can sell the stock bought in the past.

Following the implementation of the code of conduct, employees at CIT have expressed their discontent over the mechanism. “Given that the institution itself encourages capital increment for the economic development through saving mobilization, it is illogical to bar stock trading to its employees who are also a vital part of the economic system,” they said.

Nevertheless, Raman Nepal, Executive Officer of CIT clarified that the mechanism is adopted to avoid possible conflict of interest among the employees. Moreover, he said that the code of conduct is not a law to be followed but a responsibility to assume to maintain institutional discipline.

Experts view the ban irrational as CIT does not regulate any sector. They opined only those regulatory bodies that regulate capital market should ban their employees from securities trading.

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