Nepal Stock Exchange (Nepse), for the first time in its history, has suspended a company from trading its shares for leaking price sensitive information to the public.
Nepse, today, published a notice announcing the suspension of share transactions of Hamro Bikash Bank until the issuance of another notice on the same.
Kapil Dhakal, CEO of the bank had revealed the information in an interview to a daily newspaper regarding the company’s dividend percentage, which Nepse stated would affect the stock price of the company.
According to the Rules and Listing Agreement, all listed firms must abide by Nepse’s laws and anyone who leaks price sensitive information to make a profit during share trading can be charged with insider trading, which is a criminal offence.
In the notice circulated today, Nepse asked CEO Dhakal to be present at Nepse with justification on providing the price sensitive information of the company.
“Leaking such information before reporting it to Nepse, and without prior consent from the monitoring body is against the Rules and Listing Agreement,” said Shambhu Prasad Pant, spokesperson of Nepse.
Nepse has been repeatedly asking companies to forward price sensitive information, such as cash dividend, bonus shares, rights shares, and the decision of a company’s board to procure assets worth more than Rs 100 million, before the trading begins.
“Some of the new companies, have been breaching the agreement and we are making them aware,” said Murahari Parajuli, deputy spokesperson of Nepse.
source: the himalayan times,3 august 2014
LINK
Nepse, today, published a notice announcing the suspension of share transactions of Hamro Bikash Bank until the issuance of another notice on the same.
Kapil Dhakal, CEO of the bank had revealed the information in an interview to a daily newspaper regarding the company’s dividend percentage, which Nepse stated would affect the stock price of the company.
According to the Rules and Listing Agreement, all listed firms must abide by Nepse’s laws and anyone who leaks price sensitive information to make a profit during share trading can be charged with insider trading, which is a criminal offence.
In the notice circulated today, Nepse asked CEO Dhakal to be present at Nepse with justification on providing the price sensitive information of the company.
“Leaking such information before reporting it to Nepse, and without prior consent from the monitoring body is against the Rules and Listing Agreement,” said Shambhu Prasad Pant, spokesperson of Nepse.
Nepse has been repeatedly asking companies to forward price sensitive information, such as cash dividend, bonus shares, rights shares, and the decision of a company’s board to procure assets worth more than Rs 100 million, before the trading begins.
“Some of the new companies, have been breaching the agreement and we are making them aware,” said Murahari Parajuli, deputy spokesperson of Nepse.
source: the himalayan times,3 august 2014
LINK
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