Enhancing Transparency and Investor Confidence: Nepalese Companies Mandated to Disclose 'Lock-in' Share Status 30 Days prior to the Opening

In a move towards transparency and investor awareness, listed companies are now required to make public disclosures about the status of their shares in the 'Lock-in' period at least 30 days prior to the anticipated opening. The Board of Directors of Security Board Of Nepal has decided in a meeting that information regarding the commencement of trading of shares in 'Lock-in' on the second market should be publicly released 30 days prior to the opening, ensuring notification to investors and stakeholders. This decision also encompasses following the guidance issued by the Security Board Of Nepal.

The information made public is required to be available to the Security Board Of Nepal , NEPSE (Nepal Stock Exchange), and CDSC. After the expiration of the lock-in period for the shares in 'Lock-in,' the company is instructed to keep the information accessible on its website for up to one week.

There are accusations of promoters selling shares and exiting just after the lock-in period ends. Common investors often lack information about when a company's lock-in period is set to open. By offering this information a month beforehand, SEBON seeks to enlighten all investors, enabling them to stay vigilant.