SEBON Publishes Concept Paper on Advance Disclosure of Share Sales by Promoters
Summary
SEBON has published a concept paper requiring substantial shareholders of NEPSE-listed companies to give advance notice before selling 5% or more of their holdings. The move is aimed at improving market transparency, protecting small investors and strengthening surveillance of unusual trading activity.
Key Points
- SEBON published a concept paper on advance disclosure requirements for large share sales by substantial shareholders of NEPSE-listed companies.
- Shareholders planning to sell 5% or more must notify the company at least 15 days in advance, and the information must be disclosed through NEPSE.
- The regulator says the rule will improve transparency, help detect unusual price movements and support surveillance of possible market abuse.
- SEBON expects the framework to strengthen investor confidence, fairness and market integrity in Nepal's securities market.
