May 5: Securities Board of Nepal (SEBON) has issued a new directive regarding announcement of right share issuance and auction bidding of shares. SEBON releasing a circular on Tuesday, has directed companies to broadcast right share issuance notice in seven various medias while for auction bidding sale of shares, the number of medias should be six.

SEBON concluded that a day notice as per the current arrangement is not sufficient for flow of information during share issuance due to which shareholders miss out from applying for the shares. Therefore, SEBON has formulated new arrangement in order to make information system more effective for the benefits of shareholders. The board expects that the new arrangement will develop the share market, making it healthy, transparent and controlled. According to the new arrangement, while issuing the right shares, companies will have to publish notices in at least two national newspapers in the first week. Similarly, in the second week, share notification should be broadcasted in one national newspaper. Likewise, in the third and fourth week, at least two online newspapers and two FM stations should flow the information consecutively.  

Similarly, in the case of auction bidding sale of shares, companies need to broadcast the information in at least two online newspapers, seven days prior to opening of sales. Likewise, five days prior to the sales, information should be broadcasted from two major FM stations and three days before the sales, information should be broadcasted from two major national economic newspapers. Additionally, companies need to provide softcopy of the notice to the board two days before the issuance of the notice. SEBON believes that the kind of information broadcasting will reach investors to a greater extent.