KATHMANDU, Feb 6: The Securities Board of Nepal (Sebon) has warned that it will take action against the listed companies which have been refusing to submit their financial details to the authority.
Sebon Spokesperson Niraj Giri said the regulator has recently asked Nepal Stock Exchange (Nepse) to provide details of the listed companies that have failed to submit their financial reports even by the end of fiscal year 2019/20 or are ignoring to conduct their annual general meetings on time. According to him, Sebon could enlist the defiant companies in a ‘red list’ and bar them from carrying out their share transactions in the secondary market.
Sebon to make public financial reports of all listed companies
Sebon took this decision after a number of listed companies were found carrying out their shares transactions without submitting their periodic financial reports to Nepse on time. A number of insurance companies, hydropower projects and microfinance companies have been reported to be breaching the government rule.
Last week, Nepse had suspended the share transactions of two government-owned listed companies — Rastriya Beema Company and Bishal Bazaar Company Ltd - in the secondary market for failing to abide by the government rule. Although the Rastriya Beema Company has not conducted its annual general meeting for almost eight years, Sebon so far has failed to take any stern action against the state-owned insurance company.
