SEBON Directs Butwal Power Company to Halt Sale of Nyadi Hydropower Shares Over Regulatory Concerns

Securities Board of Nepal (SEBON) has issued a directive to Butwal Power Company Limited (BPCL) to halt the proposed sale of 31,00,000 shares of Nyadi Hydropower Limited. The decision follows BPCL’s letter dated Baisakh 24, notifying its intention to divest its holdings in Nyadi Hydropower.

SEBON noted that the directors of Butwal Power Company also serve as directors of Nyadi Hydropower Limited. This overlap raises concerns under Rule 38, Sub-rule (1ka) of the Securities Registration and Issuance Regulations, 2073, which prohibits such transactions due to potential conflict of interest.

As a result, SEBON has instructed the company to submit its official position along with complete details of the intended sale and has directed the company to temporarily suspend the share sale process until further notice.