SEBON proposes 15-day advance notice for major share sales
Summary
SEBON has proposed requiring substantial shareholders of NEPSE-listed companies to give at least 15 days’ notice before selling 5 percent or more of their holdings. The move is intended to improve market transparency, help investors make informed decisions and strengthen surveillance against market abuse.
Key Points
- SEBON has published a concept paper proposing advance notice for major share sales by substantial shareholders of NEPSE-listed companies.
- Shareholders intending to sell 5 percent or more of their holdings would have to notify the concerned company at least 15 days in advance.
- The advance disclosure rule is meant to ensure equal access to information and support informed investment decisions.
- SEBON says the mechanism could help detect unusual price movements and improve surveillance of possible securities offences.
