Promoter shareholders now need prior notice only above 15 percent share sale

The Securities Board of Nepal (SEBON) has amended the provision requiring promoter shareholders of listed companies to disclose information before selling shares.

The board amended its earlier directive on Friday, raising the threshold for mandatory prior notice. The previous limit of 5 percent has been increased to 15 percent.

Under the new provision, promoter shareholders will now need to give prior notice only when selling more than 15 percent of shares. This makes the prior-notice requirement for share sales less strict than before.

SEBON had earlier issued a directive requiring promoter shareholders to give prior notice before selling shares.