Securities Board of Nepal (SEBON) Instructs Listed Organizations on Compliance with Securities Law
Fri, Jul 28, 2023 6:24 AM on Stock Market, Latest,
The Securities Board of Nepal (SEBON) has issued a directive consisting of four key points to all listed organizations. On Shrawan 11th, the Board mandated full compliance with various provisions of the Securities Law to streamline the flow of information, data, and details.
The Board has stressed the timely submission of information, data, and details by all organized organizations, as it has observed non-compliance with the aforementioned provisions.
Failure to comply with the directive may result in the Board taking punitive action and imposing fines as per Section 101 of the Securities Act, 2063.
In accordance with SEBON's instructions, organizations that have registered their securities with the Board must submit the required details outlined in Schedule 14 of the Securities Registration and Issuance Regulations, 2073, within thirty days of the end of each quarterly period. Furthermore, these reports should be published in a national-level daily newspaper.
Additionally, organizations that have registered their securities with the Board must submit their annual reports, following Schedule 15 of the Securities Registration and Issuance Regulations, 2073, within five months of the end of each financial year. The annual report should include a certified summary highlighting key points of the compliance report in accordance with the sub-section of section 20 of the Institutional Governance Guidelines of Listed Organized Organizations, 2074.
SEBON has emphasized that if any event or transaction mentioned in Schedule 16 of the Securities Registration and Issuance Regulations, 2013, may impact the market value of the listed securities, the affected organizations must promptly notify the Board within three days of the occurrence.
Similarly, the Board has made it clear that any other information and details required by the securities law should also be submitted within the specified timeframes.
It is crucial for all listed organizations to adhere strictly to these instructions to maintain compliance with the Securities Law and ensure transparency and accountability in the securities market. Failure to do so may lead to legal consequences and reputational damage.
