Banking News – After the provision requiring notification to the Nepal Stock Exchange (NEPSE) before selling substantial shares came into effect, 33 investors have moved to sell 75 lakh units of shares. Since the Securities Board of Nepal (SEBON) made the provision through a directive requiring notification before selling shares, 33 shareholders of various companies have sent notices to NEPSE about selling that number of shares.

SEBON had made a mandatory provision through a directive requiring any shareholder to give 15 days’ notice before selling 5 percent or more shares of a company. SEBON had issued this directive for listed companies on Bhadau 9 itself with the objective of developing it as a means of market surveillance, investor protection, and organized trading.

According to the directive, shareholders must inform the company, and the company must inform NEPSE. SEBON had issued this directive as per Section 98(1) of the Securities Act, 2063, to arrange for public issuance. According to the same directive, shareholders have been gradually informing companies about the sale of 5 percent or more shares.

According to NEPSE, in the one month since the provision came into effect, 33 shareholders of nine companies have informed about selling more than 75 lakh units of shares. According to the notices, during this period, shareholders of Emerging Nepal and Kalinchowk Darshan have notified the sale of a total of 26/26 lakh units of shares. This includes 12 shareholders of Emerging Nepal and 12 shareholders of Kalinchowk Darshan.

Similarly, three individuals of Hathway Investment Nepal have moved to sell a total of 8 lakh 85 thousand units of shares, while 3 lakh 45 thousand units of Peoples Hydropower held in the name of Clean Energy Consultants are being sold. Similarly, notices have been given for the sale of 1 lakh 7 thousand units of Molung Hydropower, nearly 7 lakh units by two shareholders of Bhagawati Hydropower Development, and approximately 2 lakh units by two shareholders of Upper Lohore Khola Hydropower.

Similarly, one investor of Upper Hewa Khola Hydropower has notified the sale of 80 thousand units, and the sale of shares of Shweta Ganga Hydropower and Construction held in the name of Dolma Impact Fund has also been notified to NEPSE. However, the fund has not disclosed how many shares of this company it is selling.

Who Are Substantial Shareholders?

According to SEBON, investors holding 1 percent or more shares in institutions with paid-up capital of more than Rs 25 crore, and in other cases holding 5 percent or more shares, are called substantial shareholders.