SEBON Unveils Transparent Guidelines for Lock-In Periods, Enhancing Investor Awareness

The Securities Board of Nepal (SEBON) has introduced comprehensive guidelines related to the lock-in period of shares belonging to promoter groups and other entities listed on the Nepal Stock Exchange Ltd. These guidelines, in accordance with Section 87 of the Securities Act, 2063, aim to provide crucial information to investors and stakeholders, ensuring a well-informed and organized market environment.

To prevent the sale of shares by promoter groups, listed companies are now required to inform investors and relevant stakeholders at least 30 days before the specified lock-in period concludes. This information should include details about the categories under share lock-in, such as founders, local affected groups, etc. A public notice, containing the total number of shares under lock-in and the expiry date of the lock-in period, must be published for public information. Listed companies are required to promptly inform Nepal Stock Exchange Ltd. and CDS & Clearing Ltd. about the expiry of the lock-in period. Following this notification, both entities will release relevant information on their websites, which will be maintained for public viewing from the date of occurrence until one week after the lock-in period concludes.

The new guidelines, enforced as per the decision of the SEBON, aim to enhance transparency in the Nepalese stock market. Investors and the general public will have access to crucial information regarding lock-in periods, allowing them to make informed decisions.