SEBON Halts BPCL's Sale of Nyadi Hydropower Shares Over Conflict of Interest

The Securities Board of Nepal (SEBON) has issued a notice concerning the proposed share sale by Butwal Power Company Limited (BPCL) of its holdings in Nyadi Hydropower Limited.

As per the letter dated 2082/01/24 (Nepali Calendar), BPCL had made a decision to sell 3,100,000 units of shares it holds in Nyadi Hydropower Limited. This information was disclosed publicly for general awareness and later received by the Board.

However, upon review, it has been observed that some directors of Butwal Power Company Limited also serve as directors in Nyadi Hydropower Limited. This creates a potential conflict of interest. Therefore, the intended sale of shares appears to be in violation of Sub-rule (1Ka) of Rule 38 of the Securities Registration and Issuance Regulations, 2073.

In response, the Board, on 2081/01/31, officially notified BPCL, which is a listed organized institution, to:

1. Immediately suspend the proposed share sale, and

2. Submit a detailed explanation and clarification regarding the decision, along with the company’s official position on the matter.