SEBON Amends Directive: Share Sale Notification Threshold Raised from 5% to 15%, Notice Period Cut from 15 Days to 5 Days

The Nepal Securities Board (SEBON) has amended its directive regarding the sale of shares by promoter shareholders. The board changed both the threshold and the time period for prior notification.

Now, promoter shareholders falling within the scope of the relevant directive must notify the concerned company 5 trading days in advance if they intend to sell 15 percent or more of their held shares. Under the previous directive, promoter shareholders wishing to sell 5 percent or more of their shares had to notify the company 15 days in advance.

With the amendment, the threshold for notification has been increased from 5 percent to 15 percent, while the prior notice period has been reduced from 15 days to 5 trading days. The board, through a letter sent to all listed companies on Ashwin 23, informed that the directive issued on Bhadra 9, 2083 has been modified, amended, and supplemented. The revised directive also clarifies its scope.

It states that this provision applies to promoter shareholders who were present at the time of the initial public offering (IPO) of companies listed on the Nepal Stock Exchange (NEPSE) and whose lock-in period under Rule 38 of the Securities Registration and Issuance Regulations, 2073 has expired. The previous directive simply stated "promoter shareholders of companies listed on NEPSE"; it did not explicitly specify the condition of shareholders present at the time of the IPO and the expiration of the lock-in period.

According to the new provision, such promoter shareholders must give notice to the company 5 trading days in advance if they intend to sell 15 percent or more of their held shares.