KATHMANDU, Nov 10: The Securities Board of Nepal (SEBON) has scrapped the provision to hold share transactions of the companies which enter the process for merger or acquisition.
Enforcing a directive on listed companies going into merger and acquisition on Wednesday, SEBON has maintained the rule that the share transaction will be suspended for a maximum of 15 working days after the unified entity starts joint business transaction. Citing the process of re-registration, reconciliation, dematerialization and listing of the shares, the regulator has allowed the time for post unification.
NRB to act strict against BFIs leaving merger midway
As of now, the companies have to suspend the transaction of their shares after they start the unification process. SEBON had maintained the rule citing the need to prevent any extra-ordinary clearing and settlement of share trading of the listed companies that were in the process of merger or acquisition.
According to SEBON, the new rule will give some respite to the stock investors who were unable to purchase and sell the shares of companies concerned for a long time until the unification process completed. Last year, the shareholders of Nepal Investment Bank Ltd and Himalayan Bank Ltd were largely affected as these two banks canceled their unification process almost after six months of the unification process started.
