SEBON Amends Share Sale Provisions for Promoter Shareholders, Removes 15-Day Prior Notice Requirement
The Securities Board of Nepal (SEBON) has amended the provisions regarding share sales by promoter shareholders, removing the mandatory 15-day prior notice. Under the new arrangement, shareholders must notify the company only 5 trading days in advance if selling 15 or more shares. Additionally, a new provision requires immediate disclosure of details if shares that were not sold or partially sold are repurchased.
Kathmandu. The Securities Board of Nepal (SEBON) has amended the provisions regarding share sales and the 15-day prior notice requirement for promoter shareholders. SEBON introduced this new provision by amending its directive issued on Bhadra 9.
Previously, under the Bhadra 9 directive, any promoter shareholder of a company listed on NEPSE intending to sell 5 percent or more of their held shares had to inform the concerned company 15 days in advance and make the notice public through NEPSE. The notice remained valid for 3 months.
Today, SEBON has issued a new directive amending that arrangement. Under the new provision, if a promoter shareholder intends to sell 15 or more shares, they must notify the concerned company 5 trading days in advance. The listed company must then make the notice public through NEPSE upon receiving it. SEBON stated that the notice of intent to sell securities will remain valid for 3 months.
According to the new arrangement, the requirement to provide notice 15 days in advance has been removed, and the threshold for shares that promoter shareholders can sell has been increased.
Furthermore, SEBON has added a provision that if a shareholder who has circulated a notice of intent to sell securities through the listed company decides to repurchase shares of the same company—after not selling or not fully selling the intended shares—they must inform the listed company as soon as possible after the transaction is completed, mentioning the details (price and quantity).
Additionally, SEBON has directed that the listed company must make the received information regarding the share purchase public through NEPSE as soon as possible. Previously, such an arrangement did not exist.