NEPSE shock to Vindhyavasini Hydropower, demand clarification within three days
Kathmandu. Nepal Stock Exchange (NEPSE) has suspended the share trading of Vindhyavasini Hydropower Development Company Limited due to late provision of price sensitive information. NEPSE has also directed the company to submit an explanation within three working days. According to NEPSE, the meeting of the board of directors of the company was held on October 26 at 3:30 pm. The meeting will convene the annual general meeting, book [...]
Executive Summary & Core Takeaways
- The company had to inform NEPSE within the stipulated time about these decisions that could have a direct impact on the share price.
- However, it has been found that the company sent the details of the decision from the meeting only on October 27th at 5:59 pm through NEPSE's online transaction system 9LTQ0.
- NEPSE has considered it an act against the rules saying that the information was provided after the market was closed.
Kathmandu. Nepal Stock Exchange (NEPSE) has suspended the share trading of Vindhyavasini Hydropower Development Company Limited due to late provision of price sensitive information. NEPSE has also directed the company to submit an explanation within three working days.
According to NEPSE, the meeting of the board of directors of the company was held on October 26 at 3:30 pm. The meeting decided to call the annual general meeting, close the books and distribute dividends. The company had to inform NEPSE within the stipulated time about these decisions that could have a direct impact on the share price.
However, it has been found that the company sent the details of the decision from the meeting only on October 27th at 5:59 pm through NEPSE's online transaction system 9LTQ0. NEPSE has considered it an act against the rules saying that the information was provided after the market was closed.
According to Regulation 22 910 of Securities Listing Regulations, 2075, information and decisions that may affect the price must be submitted to NEPSE on the same day or the next day before the start of trading. According to NEPSE, Vindhyavasini Hydropower did not give timely notification as per the said provision.
According to the decision of 28 October 2083, NEPSE has suspended the company's share trading in accordance with Regulation 16 910 9B0 of the Securities Listing Regulations.
NEPSE has asked the company to submit an explanation explaining the reasons for the delay in sending the notice within three working days from the date of receipt of the letter. A copy of the letter signed by Suresh Joshi, Assistant Manager of NEPSA, has also been sent to the Secretariat of Nepal Securities Board, CDS and Clearing Limited and Chief Executive Officer of NEPSA.
Timely disclosure of price sensitive information is considered necessary to create an environment where all investors receive information equally in the capital market. Such a system has been implemented to reduce the possibility of insider trading and maintain transparency in the market.
All figures and disclosures cited in this dispatch are cross-verified against official documents, institutional releases, and primary verified sources.