CDS and Clearing Limited (CDSC), a government-owned company, has issued a new notice to all listed companies, share registrars, and transfer agents.
The notice reminds companies about the rules when appointing new directors, executives, auditors, or company secretaries. Companies must officially inform CDSC about these appointments and provide complete details of the officials.
What companies must do now?
Whenever a company appoints new directors, executives, auditors, or secretaries, they must officially inform CDSC.
Not just the appointment, the company must also provide full details of the new official, including:
- Name
- Address
- Citizenship number and district
- Appointment date
- The company where shares must be locked (with ISIN number)
- Share group
- Beneficiary account number
According to the Securities Registration and Issuance Regulation 2073, officials of listed companies cannot buy, sell, or transfer the company’s shares during their time in office. This rule also applies to family members or firms connected to the official. Even after leaving their position, they must wait one year before they can trade those shares.
CDSC has stated that this rule is important to ensure transparency and good governance in Nepal’s stock market. The organization has asked all companies to follow the rule and send the required details without delay.
