The Securities Board of Nepal (SEBON) is looking positive about changing the rule that requires major shareholders to give notice 15 days before selling their shares.
Discussion on Current Rules
Recently, investors spent about three hours talking with SEBON officials about making the current share trading rules more practical. During the meeting, the main concern was why even investors who bought shares from the secondary market have to give a 15-day notice before selling them. Many people who participated in the meeting asked that this rule be removed for secondary market purchases.
Investor Suggestions
Investors also talked about the promoter lock-in period. For companies like hydropower, once the 3-year lock-in period ends, the shares come to the market. The investors suggested that there should be a separate window or an offer for sale market for these shares. Tilak Koirala, one of the investors, suggested that the 15-day notice period should be reduced to 7 days. He also proposed that there should be a separate bulk trading system for buying and selling large amounts of shares.
According to him, if major shareholders need to sell a big amount of shares, they should have a separate window for bulk trades instead of dumping everything in the secondary market at once. Another investor, SP Chaulagain, suggested creating a special portal that shows details of major shareholders. He thinks this portal should regularly update the names of the major shareholders and the number of shares they own in each company.
Other Financial Concerns
The meeting also covered why a 15-day notice is only needed for selling shares and not for buying them, suggesting the system is not balanced. Investors want a more organized way for people who want to buy big amounts of shares too. Besides these points, Chaulagain said that they talked about margin trading, price adjustments after book close, and other things related to bonus and right shares.
Investors had a 3-hour discussion with SEBON about the requirement to give 15-day notice before selling shares, who said what? [With Video]
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.
