New Rule for Listed Companies: Disclosure Required for Share Purchases Above 5%

A new regulation has come into effect regarding investment management in companies listed under the Securities Board of Nepal (SEBON). As per the rule, if any investor acquires 5% or more shares of a single company, they must immediately disclose this information to NEPSE.

NEPSE has also directed listed companies to submit their financial reports and complete investment details on time. According to the rule, audited annual financial statements must be submitted to NEPSE within 5 months of the fiscal year-end, and quarterly reports must be submitted within 1 month of the quarter-end.

Under the new rule, companies must also immediately inform NEPSE of:

• Book closure decisions

• Purchase or sale of assets worth more than Rs. 100 million

• Changes in the board of directors or its members

• Decisions to undertake liabilities exceeding Rs. 100 million

In total, NEPSE has instructed listed companies to regularly provide 19 different types of disclosures. This is expected to ensure transparency and provide investors with reliable information.