The Securities Board of Nepal has revised its guidelines, meaning fundamental shareholders no longer need to provide a 15-day notice before selling their shares in the secondary market.
New Rules for Share Sales
The Securities Board of Nepal (SEBON) has changed the way listed companies notify about their share sales. According to the new instruction released on Asoj 23, fundamental shareholders who were present during the Initial Public Offering (IPO) must now inform their company five trading days before selling 15 percent or more of their shares after the lock-in period ends.
Before this update, shareholders who wanted to sell 5 percent or more of their stake had to provide a notice 15 days in advance. Under these new rules, once the company receives the sale notice, they should share it with the Nepal Stock Exchange (NEPSE) as soon as possible. This notice remains valid for three months.
Updated Reporting Requirements
SEBON also added a new rule for shareholders who did not sell all their shares or had some left over. If these shareholders buy shares of the same company again, they must inform the company about the purchase after the transaction is complete. In this report, they have to mention the price and total quantity of shares bought. Once the company gets this info, they should release it to NEPSE immediately.
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.
