Banking News – The Securities Board of Nepal (SEBON) has amended the provision regarding the share sale process for substantial shareholders of listed companies. According to a letter issued by the Board’s Regulation Department addressed to all listed companies, substantial shareholders of companies listed on the Nepal Stock Exchange (NEPSE) must inform the concerned company five trading days in advance when selling 15 percent or more of the shares they own.

The Board has stated that it amended the directive as per Section 48, Sub-section (1) of the Securities Act, 2063, with the objective of making securities trading organized, effective, and reliable. The Board had previously made a provision requiring substantial shareholders to inform the concerned company 15 days before selling if they wished to sell 5 percent or more of the shares they own.

According to Directive No. 1, shareholders who have disseminated information through the listed company with the intention of selling securities must inform the listed company immediately after the transaction is completed with details if they do not sell the shares they intended to sell or have not fully sold them, and then purchase shares of the same company again. The Board has stated that the listed company must arrange to make the received information regarding the purchase of securities public through NEPSE as soon as possible.