NEPSE Directs Listed Companies to Provide Dividend Information Digitally

The Nepal Stock Exchange (NEPSE) has instructed all listed companies, mutual funds, and share registrar firms to mandatorily provide dividend-related information to shareholders and investors through digital platforms.

Issuing a directive on Friday, NEPSE asked listed companies and registrar firms to ensure that information related to dividends of shares, mutual funds, and debenture holdings is delivered through electronic means. The move is aimed at improving transparency and strengthening communication with investors.

According to NEPSE, companies and mutual funds must now send dividend details via email and SMS. The message should clearly mention the stock symbol, the fiscal year for which the dividend is being distributed, and the dividend rate and percentage. This requirement is expected to help investors receive accurate and timely information about their returns.

In the case of debenture holders, NEPSE has directed issuers to include the security symbol, relevant fiscal year, and applicable interest rate in the digital notification. This provision ensures that fixed-income investors are also kept well informed about their earnings.

Market officials believe that this directive will significantly improve access to information for shareholders. In the past, many investors complained about delays, incomplete notices, or lack of clarity regarding dividend announcements. By making digital communication mandatory, NEPSE aims to address these long-standing issues.

NEPSE expects that the new system will make information flow more transparent and efficient. Timely access to dividend details will help investors plan their finances better, manage tax obligations, and make informed investment decisions.

Investors have welcomed the initiative, saying that digital notifications will reduce dependence on physical notices and unofficial sources. They believe that direct communication from companies will increase confidence in the market and minimize misinformation.

Market analysts view this step as part of NEPSE’s broader effort to modernize Nepal’s capital market. Strengthening digital systems, improving disclosure practices, and enhancing investor services are seen as essential for building a more reliable and technology-driven market.

NEPSE has stated that it will closely monitor the implementation of this directive. Companies that fail to comply may face regulatory action. The exchange has also indicated that further digital reforms will be introduced to improve market efficiency and investor protection in the future.