SEBON Assistant Spokesperson Tolakanta Neupane confirmed that the regulator has invited investor representatives for discussions to address market concerns and revise the policy. While the board is exploring modifications rather than a complete repeal, final decisions will be made following the return of SEBON Chairman Gopal Prasad Bhatta, who is currently out of the Kathmandu Valley for 'World Investor Week'.
Implemented on August 22, the directive required original shareholders to publicly announce their intent to sell 5 percent or more of a listed company's shares through NEPSE 15 days in advance. The policy intended to boost transparency, but instead triggered widespread panic selling and a steep market crash. Share prices plummeted between 20 and 37 percent, destroying billions of rupees in market capitalization even before founders actually sold any stock.
Hard-hit companies included Emerging Nepal (ENL), which saw its share price drop from Rs. 860 to Rs. 539—a 37 percent decline—after 12 primary shareholders notified a sale of over 2.92 million units. Similarly, Hathway Investment (HATHY) shares fell from Rs. 580 to Rs. 417.
Capital market analysts, financial sector leaders, and veteran investors had repeatedly warned that the 15-day deadline lacked scientific backing and would create artificial selling pressure. Critics argued that the policy infringed upon the property rights of founders and ignored ground realities.
As SEBON sits down with stakeholders, investors are strongly demanding either a complete scrapping of the 15-day provision or a shift to post-trade disclosures that align with international practices.
