Nepse tells cos to lie low during trading hours

KATHMANDU, FEB 07 -

The Nepal Stock Exchange (Nepse) on Thursday asked listed companies not to make  decisions that could influence share prices during trading hours from 12 am to 3 pm, Sunday to Thursday.

Nepse has defined decisions regarding issuance of bonus shares, cash dividends and rights shares and purchase and sale of properties worth more than Rs 100 million as those that could influence stock prices.

“As decisions taken during the trading period influence share prices based on information leaked to selected investors, we have asked listed companies not to hold board meetings to make decisions that could influence prices,” said Nepse General Manager Sitaram Thapaliya.

Earlier, Nepse had asked listed companies to inform it about such decisions an hour before share trading begins.

Upgrading this provision, Nepse has specifically told listed companies to keep their board decisions a secret before submitting the details.

“Those failing to do so will be charged with insider trading,” warned Thapaliya.

Similarly, Nepse has asked them to be careful when conveying information about discussions and decisions regarding mergers and takeovers by the regulator as rumours about mergers affect share prices.

Thapaliya said Nepse sought clarifications from companies after news stories about price-sensitive decisions were published in the papers and online media.

The market has also asked companies to state the exact percentage of bonus shares, cash dividends and rights shares to be issued while publishing notices about their annual general meetings.

Thapaliya said that Nepse had also asked listed companies to make payment only by account payee cheque.

Source: The Kathmandu Post