Bindhyabasini Hydropower's Share Trading Suspended, Explanation Demanded Within 3 Days
The Nepal Stock Exchange (NEPSE) has suspended trading of shares of Bindhyabasini Hydropower Development Company Limited. The company has been directed to submit an explanation within 3 working days for failing to disclose price-sensitive information in a timely manner.
The Nepal Stock Exchange (NEPSE) has suspended trading of securities (shares) of Bindhyabasini Hydropower Development Company Limited. NEPSE halted the company's trading, citing failure to promptly provide sensitive information that directly impacts share prices, such as dividends and annual general meetings.
NEPSE has also instructed the company to submit an explanation within 3 working days. According to a letter issued by NEPSE's Listing Department, the Board of Directors meeting of Bindhyabasini Hydropower was held on Ashwin 26 at 3:30 PM. The meeting made important decisions regarding calling the annual general meeting, book closure, and dividend distribution. Such decisions affecting securities prices must legally be submitted to NEPSE on the same day or before trading opens the next day. However, the company only informed NEPSE about the decisions made on Ashwin 26 through its online system on the next day, i.e., Ashwin 27 at 5:59 PM.
Regulation 22 (1) of the Securities Listing Regulations, 2075, mandates that any information, notice, or decision affecting securities prices must be submitted by the listed institution to NEPSE on the same day or before trading opens the next day. Bindhyabasini Hydropower was found to have violated this regulation by sending the information only after the market closed, a full day later. Deeming this a clear violation of the regulation, NEPSE announced the suspension of the company's share trading as per Regulation 16 (1) (b) of the Securities Listing Regulations, according to a decision dated 2083 Ashwin 28. Additionally, NEPSE has directed the company to submit an explanation within 3 (three) working days from the date of receiving the letter, stating the reasons for not providing timely information. The letter, signed by NEPSE Assistant Manager Suresh Joshi, has been copied to the regulatory body Nepal Securities Board (SEBON), CDS and Clearing Limited, and the Secretariat of NEPSE's Chief Executive Officer.
In the capital market, rules requiring immediate public disclosure of price-sensitive information are being strictly enforced to prevent insider trading and ensure equal access to information for ordinary investors. NEPSE has stated that the company's share trading will not be released until a satisfactory explanation is submitted.