Why did NEPSE Suspended Share Trading of Central Finance (CFCL)?

According to the official notice of Nepal Stock Exchange (NEPSE) , the transaction of Central Finance (CFCL) has been stopped because it published a notice stating that 5 percent of cash dividend would be issued to the shareholders while the shares were being traded.

The letter regarding dividend declaration of Fiscal year 2078/79 by Central Finance was received by Nepal Stock Exchange at 12:39 PM during business hours yesterday.

According to the provision in Regulation 22(1)(d) of the Securities Listing Regulations, 2075, if notices, information and decisions affecting securities prices are created, such notices, information and decisions must be submitted to NEPSE on the same day or the next day before the opening of business.

Since, CFCL contradicted the rules outlaid by NEPSE, the trading of the securities of the said company has been suspended. Likewise, within 3 (three) working days, the company is required to submit an explanation in this regard.