KATHMANDU, Sept 8: The Nepal Stock Exchange (NEPSE) has directed listed companies to promptly disclose major financial and corporate details in a bid to curb possible share price manipulation.
According to a public notice issued by NEPSE, companies must inform the stock exchange if any individual investor or institution acquires more than five percent of their shares. Officials said the rule aims to prevent attempts by a single party to distort a company’s share price through bulk purchases.
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NEPSE has also required listed companies to submit their audited financial statements and auditor’s reports within five months of the fiscal year’s end. In addition, quarterly reports—covering earnings per share, price-earnings ratio, net asset value per share, total assets, and liquidity ratio—must be filed within one month after each quarter.
Companies are further obliged to notify NEPSE at least one week before book closure for general meetings. Immediate disclosure is also mandatory for major corporate decisions, including the purchase or sale of assets worth Rs 100 million or more, changes in the board of directors, or assumption of liabilities exceeding Rs 100 million.
Overall, NEPSE has listed 19 categories of information that companies must now provide without delay, reinforcing transparency in the securities market.
