Investor representatives met with officials from the Securities Board of Nepal to discuss the requirement of giving a 15-day notice before selling promoter shares.
Meeting Between SEBON and Investors
The Securities Board of Nepal (SEBON) recently held a three-hour discussion with various investor representatives. The meeting focused on the new rule requiring major shareholders to provide a notice 15 days before selling their shares. Both parties talked about the confusion caused by this rule and how it might impact promoter share trading and general investors in the secondary market.
Following the discussion, investor representatives shared that SEBON officials, including Executive Director Rupesh KC, listened to their suggestions in a positive way. They added that the board has promised to make a decision after making necessary improvements soon.
Views from Investors
Investor Tilak Koirala stated that this 15-day notice rule should not apply to those who buy shares from the secondary market. He suggested that when a large amount of shares needs to be sold after the lock-in period ends, there should be alternative ways like offer for sale or bulk trading. He emphasized that while promoters should have the right to sell their shares, the company’s business stability and growth must also be protected.
Ghanshyam Pandey mentioned that they are waiting for the SEBON chairman to return so the board can hold a meeting to address their concerns. He explained that their group gave a joint suggestion covering many areas, such as promoter share definitions, corporate governance, and IPO processes. They are hopeful that a positive decision will be made once the meeting is held.
Deepak Ratna Shakya expressed concerns that forcing a large volume of shares through the regular Trading Management System (TMS) could cause system problems. He noted that if a company has a small float and a huge amount of shares suddenly enters the market, the regular system might not handle it well. He suggested that there needs to be other ways to manage large transactions. However, he also supported the main goal of the rule, which is to reduce the information gap between insiders and the public. He said they want to help the board, but the practical weaknesses in the rules should be fixed.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
