NEPSE Directive: Information Impacting Market Price Must Be Disclosed Immediately
Author
NEPSE TRADING
Nepal Stock Exchange (NEPSE) has directed all listed companies to promptly provide information that could affect the market price of their securities. Issuing a notice, NEPSE has instructed companies to submit required information in the prescribed format and within the given timeframe.
Immediate Disclosure of Dividend Decisions
According to NEPSE, if decisions are made regarding cash dividends, bonus shares, rights issues, or additional share issuance, such information must be submitted immediately. The disclosure should also include the date and time of the board meeting, the fiscal year, book closure date, ratio, and number of shares or amount involved.
Price-Sensitive Information Must Be Publicized
Any decision or event that could influence the market price of securities must be made public either on the same day or before 10:30 AM the next trading day. Companies must also publish such notices on their official websites in addition to informing NEPSE.
Mandatory Financial Reports
Audited financial statements and the auditor’s report must be submitted within five months of the fiscal year’s end. Likewise, quarterly reports—covering earnings per share, price-to-earnings ratio, net asset value per share, total asset value per share, and liquidity ratios—must be submitted within 30 days of the quarter’s end.
Special Disclosures for Transparency
Any decision to purchase or sell assets worth NPR 100 million or more must be disclosed immediately.
Changes in the board of directors, audit committee, CEO, company secretary, chief of accounts, or auditors must be reported promptly.
Any legal case filed in court involving potential liabilities of NPR 100 million or more must be disclosed.
Other Key Requirements
Mutual fund managers must submit monthly reports on net asset value (NAV) and investment status within 15 days of each month’s end.
Decisions on mergers, acquisitions, or significant ownership changes must be disclosed immediately or before the next trading day begins.
Annual listing fees must be paid within three months (by the end of Ashwin) after the close of the fiscal year.
Companies must promptly report disruptions caused by natural disasters, strikes, or other emergencies.
Shareholding & AGM Transparency
If an individual or institution acquires 5% or more shares, the information must be reported immediately.
If shares are issued in place of cash to any director or institution, the disclosure must be made without delay.
Reports, balance sheets, profit and loss accounts, and agenda items for the Annual General Meeting (AGM) or Special General Meeting (SGM) must be submitted mandatorily.
Proposals discussed and decisions passed during the AGM/SGM must be submitted to NEPSE within one month of the meeting.
NEPSE’s latest directive aims to ensure greater transparency, strengthen corporate governance, and protect the interests of investors.
