Lock-In Period of 1 Lakh Shares of Yambaling Hydropower Limited to Expire on Kartik 29

The lock-in period of 105,000 shares hold by mutual funds valued at NPR 10.5 million of Yambling Hydropower Limited is set to expire on Kartik 29, 2083 (November 15, 2026). Following the expiry, the shares will become eligible for trading in the secondary market.

The company had issued shares to the general public on Baisakh 30, 2083, following approval from the Securities Board of Nepal (SEBON). As part of the issuance, 5% of the shares allocated to the general public, worth Rs. 1.05 crore, were reserved for Mutual investment funds at a face value of Rs. 100 per share.

According to the company, the six-month lock-in period for these shares will end on Kartik 29.

In addition, the company clarified a special condition regarding 995 shares belonging to a specific mutual fund scheme. Because that scheme reached its official completion (maturity) date, those 995 shares were released prior to the end of the standard holding period.

What Do We Need to Know:

There is a different reality of companies in market whose lock in period is near to end. When lock in period ends company's shares get excessive selling pressure as like everyone want to get rid of the share. The result of any company ending lock in period is "Price falls down, selling quantity increases, turnover reaches high". 

But what many investor don't know is, ending lock in period is not a bad news, there will be a more outstanding share in the market when lock in period ends. Ending lock in period doesn't mean everyone have to sell immediately. Investor can sell any time after  1 month, 2 month or any time frame but doesn't have to sell in the same day of lock-in expiration of share. 

So, lock-in period is a minimum time restriction for the investor and companies in various categories to protect the company and small investor. No one has to be in hurry to sell share when lock in period ends.