SEBON brings first amendment to Securities Listing and Trading bylaws 2075; investment upto 50K in paid up capital to be regarded as small investment down from Rs 500K

Securities Board of Nepal has proposed to bring into effect the first amendment to the bylaws which it has issued on Magh 24, 2074 to ensure corporate governance and transparency among the listed companies in Nepal Stock Exchange. As per the amendment proposal,

One who makes investment on paid up capital of upto Rs 50K in stock market will now be considered as small investor unlike the previous provision to consider investment of upto Rs 5 lakh or till 5K unit shares as small investment.

Moreover, the listed companies are now required to regularly publish all their information for public consumption without manipulation which has potential to impact the price of stocks in secondary market. Similarly, these companies are also required to update the details of their BODs in their annual reports when 2 or more board members are from the same family.

Likewise, the companies are now onwards required to make provision for an audit committee under the BOD which comprises of 3 members; one of whom should have more than 3 years of experience in financial sector or should have academic specialization in finance. In addition, one who receives salories and other benefits at one listed company is now not allowed to draw similar benefits from another company.